The quarterly requirement of some modules of Shan Engineering Company for manufacturing of water pumps is 1,200 units. The cost per module is Rs. 120. The Ordering Cost is Rs. 800 while the Carrying Cost of average inventory investment is 20%.
Required: - Compute the followings: -
A) Economic Order Quantity.
B) -Total number of orders to be placed in a year based on EQQ modeling.
C) Frequency of orders in days. D) Annual Ordering Cost.
E) Annual Inventory cost.
