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Material cost

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(Querist)
04 April 2017 xyz company buys in lots of 500 boxes which is a 3 month supply. the cost per box is Rs.125 and the ordering cost is Rs. 150. The inventory carrying cost is estimated at 20% of unit value.
a) what is the total annual cost of the existing inventory policy?
b) How much money could be saved by employing the economic order quantity?
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Aashok Kumar Sharma

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Aashok Kumar Sharma (Expert)
03 August 2024 https://docs.google.com/document/d/1NfMaRu38xDBBudw3kR7mOmLCdTyKSMzDUDlZy1_vHgQ/edit?usp=sharing
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