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

Functions of research of marketing, What is function of research of marketi...

What is function of research of marketing? Functions of Research of Marketing: This means the intelligence service of organization marketing research assists in analyzing

Ten principles of reinvention , As per the Osborne and Gaebler, governments...

As per the Osborne and Gaebler, governments don't work well, since they are tall, sluggish, over-centralized, and preoccupied with diverse rules and regulations."We developed publi

Market penetration of FMCG and regional products in rural, meaning of regio...

meaning of regional products or definition of regional products

Co-branding, what is meant by line extension of a product?

what is meant by line extension of a product?

Effect on prices in advertising, Q. Effect on Prices in advertising? E...

Q. Effect on Prices in advertising? Effect on Prices:- The supporter of advertising quarrel that advertising helps to reduce prices Advertising results in decrease of per uni

What marketing strategies, What marketing strategies are appropriate at eac...

What marketing strategies are appropriate at each stage of the product life cycle? How can a company build and mange its product mix and product lines.

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

Discuss the implications of behavioural changes, Mauritius is an open econo...

Mauritius is an open economy. The recent global financial crisis, world climatic changes impacting on food prices, and the strong demand from the BRIC(Brazil, Russia, India, and Ch

Define the most important cost concepts, Problem 1: (a) Define the fou...

Problem 1: (a) Define the four most important cost concepts. (b) Describe clearly the statement, ‘Buyer and seller may have different perspectives on what price means'.

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