Programme Code : MP
Course Code : MS - 51
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Year : 2014 Views: 634 Submitted By : Priya Kak On 12th March, 2014

Do you have solution for this Question. If yes    I aslo want solution.


(a)Minicomputer Company purchases a component for which it has a steady usage of 1,000 units per year. The ordering cost is Rs. 50 per order. The estimated cost of money invested in inventory is 25 per cent per year. The unit cost of the component is Rs 40. Calculate the optimal ordering policy and total cost of the inventory system, including purchase cost of the components.

(b) If, in this, the component supplier agrees to offer price discounts of minimum lot supplies as per schedule given, reassess the decision on the optimal ordering policy and the total cost as before.

Lot size (Units)              Price per unit

Up to 149                             Rs. 40

150-499                               Rs. 39

500 or more                        Rs. 38

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