MATERIALS CHAPTER OF COST & FM
This query is : Resolved
18 February 2009
IF IN A PARTICULAR QS-
FOR EG-
AN ENTERPRISE MANUFACTURES A SPECIAL PRODUCT "ZED" THE FOLOWING PARTICULARS HAVE BEEN GIVEN
MONTHLY DEMAND OF ZED -1000 UNITS
NORMAL USAGE 50000 UNITS PER WEEK
SO IN ORDER TO FIND OUT ANNUAL CONSUMPTION FOR CALCULATING EOQ WHAT WILL WE USE WHETHER MONTHLY DEMAND OR NORMAL USAGE ? THIS IS A GREAT CONFUSION AS IN THE STUDY MATERIAL-NORMAL USAGE HAS BEEN TAKEN WHILE IN THE SCANNER- MONTHLY DEMAND HAS BEEN CONSIDERED
FOR EG-
AN ENTERPRISE MANUFACTURES A SPECIAL PRODUCT "ZED" THE FOLOWING PARTICULARS HAVE BEEN GIVEN
MONTHLY DEMAND OF ZED -1000 UNITS
NORMAL USAGE 50000 UNITS PER WEEK
SO IN ORDER TO FIND OUT ANNUAL CONSUMPTION FOR CALCULATING EOQ WHAT WILL WE USE WHETHER MONTHLY DEMAND OR NORMAL USAGE ? THIS IS A GREAT CONFUSION AS IN THE STUDY MATERIAL-NORMAL USAGE HAS BEEN TAKEN WHILE IN THE SCANNER- MONTHLY DEMAND HAS BEEN CONSIDERED
CA Nitin Wadhwani
(Expert)
18 February 2009
We have look into the usage not the "demand" of the product.
It is given to divert the attention of the student.
It is given to divert the attention of the student.
Vishal Chaturvedi
(Expert)
19 February 2009
Monthly demand to be considerd as formula says annual demand.so go for it
CA Nitin Wadhwani
(Expert)
19 February 2009
Its not annual demand but annual requirement.
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