Determine the economic order quantity, Microeconomics

Question:

Describe the meaning of ABC inventory control and on what key premise is this system based?

The finance department of Electric Corporation gathered the following information: The carrying cost per unit of inventory is Rs10, The fixed cost per order is Rs20,the number of units required is 30,000 per year, the variable cost per unit ordered is Rs2 and the purchase cost price per unit is Rs30

Required:

(a) Determine the economic order quantity (EOQ)
(b) Determine the total number of orders in a year
(c) Evaluate the time-gap between two orders
(d) What modification is required in the basic EOQ analysis in order to cope with the problem of inflation?
(e) What are the limitations of the EOQ model?

Posted Date: 11/20/2013 2:41:03 AM | Location : United States







Related Discussions:- Determine the economic order quantity, Assignment Help, Ask Question on Determine the economic order quantity, Get Answer, Expert's Help, Determine the economic order quantity Discussions

Write discussion on Determine the economic order quantity
Your posts are moderated
Related Questions
How to solve questions of endowments?

Allocation Function The shifting or reallocation of production property into or out of markets based on shifts in prices for the products or services produced in that market.

What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left?  AD shifts to the right when any component of AD enhances autonomously; e.g

Q. What do you meant by Private Equity? Private Equity: A form of business in which company's entire equity base is owned by one or a small group of individual investors. Under

What is the Adam smith view of "invisible Hand"?  Invisible hand is an unknown power which is working for the interest of total economy. In any economy, everybody cares for his


A firms total cost function is TC=0.0006*X^3-0.086*X^2+4.8*X+25 and its total revenue function is TR=2.5*X find its profit function

Determinants of Private Demand - Ability to Pay In a developing country like India, of all the factors determining investments in education, the most important factor is the ‘

What are the two main forms of economic distribution? What is the difference between them?   The two major forms of economic distribution are exchange and transfer. Exchange in

elasticity of demand