From the details given below, calculate:
Reordering quantity is to be calculated based on following information:
Cost of placing a purchase order is Rs. 20.
Number of units to be purchased during the year is 5,000.
Purchase price per unit inclusive of transportation cost is Rs. 50.
Annual cost of storage per unit is Rs. 5.
|
Details of lead time: Average |
10 days |
|
Maximum |
15 days |
|
Minimum |
6 days |
|
For emergency |
4 days |
|
Rate of consumption average |
15 units per day |
|
Maximum: 20 units |
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