Costing- Material
This query is : Open
08 April 2011
If Annual Demand and Normal usage are both given in the question,to calculate EOQ or Reorder Quantity, which one should be taken?
08 April 2011
Annual Demand should be taken.
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08 April 2011
Thank You Sir, But in this problem, i am not getting Ordering cost=Carrying cost @ EOQ when I take Annual Demand. But i get it at normal Usage. Here is the Question:
M/s Tubes Ltd. manufactures TV tubes.
The market demand is 2000 per month.
Ordering Cost 100 per order,inventory carrying cost 20% p.a.
Cost of tubes 500/tube
Normal usage 100 tubes/week
Minimum Usage 50/week
Maximum Usage 200/week
M/s Tubes Ltd. manufactures TV tubes.
The market demand is 2000 per month.
Ordering Cost 100 per order,inventory carrying cost 20% p.a.
Cost of tubes 500/tube
Normal usage 100 tubes/week
Minimum Usage 50/week
Maximum Usage 200/week
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