Total ordering and holding costs, Marketing Management

A manufacturing company has determined from an analysis from its accounting and its production data for a certain part that its demand is 9000 units/annum and is uniformly distributed over the year. Its cost is Rs 2/unit and its ordering cost is Rs 40/order and Inventory carrying charge is 9% of the Inventory value. Further, it is known that the lead time is uniform and equal 8 working days and that the total working days in a year are 300.

Determine the:

(i) EOQ

(ii) Optimum no of orders/annum

(iii) Total ordering and holding costs associated with the policy of ordering an amount equal to EOQ

(iv) The reorder level

(v) The no of days stock at reorder level

(vi) The length of the inventory cycle

Posted Date: 3/2/2013 6:31:09 AM | Location : United States

Related Discussions:- Total ordering and holding costs, Assignment Help, Ask Question on Total ordering and holding costs, Get Answer, Expert's Help, Total ordering and holding costs Discussions

Write discussion on Total ordering and holding costs
Your posts are moderated
Related Questions
What are the Aims of marketing communications Aims of this introductory module are to explore some of the concepts associated with marketing communications and to develop an a

A planning in which a business expands its activities to include allocation or lines of business related to the selling of its core products.

traveling salesman problem examples showing table and graphs

Should video game companies continue to alter their products to include other functions, such as e-mail?

State the Nature of Product - Choice of distribution channel Nature of the product considerably affects choice of channel of distribution. In case product is of technical n

various approaches that are followed by FMCG companies test marketing in marketing management

What is Growth Stage in marketing strategies? Growth Stage: a. Improve product quality, add new product features and enhance styling. b. Adding new model and flanker

Meaning of the promotion mix: Promotion mix refers to the combination of the various promotional elements viz, advertising, personal selling, publicity and sales promotional te

Intensity of the distribution (market coverage): The nature and intensity of the competition in the industry will determine the distribution pattern adopted by a firm. Some