Costing - Materials - PCC
This query is : Resolved
25 March 2009
Please tell me how to solve this question step by step.
Following information relating to a type of raw material is available:-
Annual demand :2400 units
Unit Price :Rs2.40
Ordering cost per order :Rs4.00
Storage Cost :2% p.a.
Interest Rate :10% p.a.
Lead Time :Half-month
Calculate EOQ, and total annual inventory cost in respect of the particular raw material.
Following information relating to a type of raw material is available:-
Annual demand :2400 units
Unit Price :Rs2.40
Ordering cost per order :Rs4.00
Storage Cost :2% p.a.
Interest Rate :10% p.a.
Lead Time :Half-month
Calculate EOQ, and total annual inventory cost in respect of the particular raw material.
Manmohan ACA, CS
(Expert)
30 March 2009
Answer sent to ur PM
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