A manufacturer uses 75,000 units of a particular material per year. The material cost is ₹1.50 per unit and the carrying cost is estimated at 25% per annum of average inventory cost. The cost of placing an order is ₹18.
CS Executive · Cost and Management Accounting · PYQS · December 2013
A manufacturer uses 75,000 units of a particular material per year. The material cost is ₹1.50 per unit and the carrying cost is estimated at 25% per annum of average inventory cost. The cost of placing an order is ₹18. You are required to determine the economic order quantity (EOQ), frequency of orders per annum and time between two consecutive orders.
Topics: Inventory Control
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