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The firm manufactures photocopying machines and the production plant requires 4087 rollers every year. The supplier claims OMR 49.7 for ordering each time and each roller cost OMR 21.2. The inventory

The firm manufactures photocopying machines and the production plant requires 4087 rollers every year. The supplier claims OMR 49.7 for ordering each time and each roller cost OMR 21.2. The inventory carrying cost is estimated to be 16.25 % of purchase cost. Calculate: A) Inventory carrying cost. Answer for part 1 B) Economic Ordering Quantity. Answer for part 2 C) Optimum order interval in days. Answer for part 3 D) Average inventory at any time. Answer for part 4 E) storage cost at any time. Answer for part 5 F) Minimum total inventory cost per year.

Apr 15 2021 View more View Less

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