Following information are provided: Annual requirement 50,000 units Ordering cost per order Rs 500 Cost of opportunity Rs 1 per unit Cost of rent,…
2024 · Solved Question with Answer
Following information are provided:
| Annual requirement | 50,000 units |
| Ordering cost per order | Rs 500 |
| Cost of opportunity | Rs 1 per unit |
| Cost of rent, insurance and taxes | Rs 1 per unit |
Required:
a) Economic order quantity.
b) The annual total cost of the optimum purchasing policy.