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Zen bycles ltd sources 3000 seat covers for its bicycles from an outside suppliers. The OC is Rs.10 per order and CC is Rs.6 per unit per year. The company has 300 working days per year.
Find
a) EOQ
b) Number of order per year
c) Total inventory cost
d) Number of inventory cycles in a year
e) Duration of an inventory cycle.
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dramatic shift from past practices, so there are implementation concerns.
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What is the net present value (NPV) of this replacement project? Round to the nearest $0.01 (e.g., if your answer is $7.585, record it as 7.59).
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