Total ordering and holding costs, Marketing Management

Assignment Help:

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


Related Discussions:- Total ordering and holding costs

Determine the concept of elasticity of demand, Determine the Concept of ela...

Determine the Concept of elasticity of demand Decision-making point of view, though, the knowledge of only the nature of relationships isn't sufficient. What is more significa

Name the factors affecting pricing decisions, Name the factors affecting pr...

Name the factors affecting pricing decisions a) Cost b) Demand c) Competition d) Marketing Objectives e) Government Regulation

Development of market segmentation, Problem 1: The development of marke...

Problem 1: The development of market segmentation and target marketing reflect the movement away from production orientation towards marketing orientation. Discuss. Problem

TEST MARKETING, what is text marketing and explain the various approaches t...

what is text marketing and explain the various approaches that are followed by FMCG companies in Test marketing

Competitive branding strategy, Competitive branding strategy: There ar...

Competitive branding strategy: There are three branding policies and strategies: 1.       Brand policies and strategies adapted by the manufactures 2.       Brand polici

Evaluation and control in the marketing communication plan, Question 1: ...

Question 1: (a) Illustrate how personal selling and direct marketing can be used to enhance the relationship with customers. (b) Critically evaluate the use of controversi

Explain the elements of marketing mix, Question 1: (a) What do you und...

Question 1: (a) What do you understand by the term "market segment"? (b) Explain why the concept of segmentation may be of value to the marketing department of a large bus

What is marketing, What is marketing? a. B uilding customer value a...

What is marketing? a. B uilding customer value and satisfaction are at the very heart of current marketing thinking and practice. b. A very easy definition of marketing

Probability, how to solve problems involving conditional statement

how to solve problems involving conditional statement

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd