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    Inventory MGMT

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    nebaje5057
    Inventory management

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    © All Rights Reserved
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    Inventory MGMT

    Uploaded by

    nebaje5057
    12 views10 pages
    Inventory management

    Original Title

    Inventory Mgmt

    Copyright

    © © All Rights Reserved

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    XLSX, PDF, TXT or read online from Scribd

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    Inventory management

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    12 views10 pages

    Inventory MGMT

    Uploaded by

    nebaje5057
    Inventory management

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 10

    Q1 Annual Requirement 2000 Units

    Cost of Material Per Unit 20 Rs


    Order Cost per order 40 Rs
    Carrying cost of inventory 20% of Inventory Value

    A 2000 2000
    O 40 40
    C 20% X 20 4 160000
    4

    40000

    A EOQ 200

    B No of Orders A 10
    EOQ

    C Time Gap between two orders No of days in a year 365


    No of Orders 10 36.5

    D Total Cost Purchase Cost 2000 x 20 40000


    Carrying Cost EOQ/2 x C 400
    Order Cost A/EOQ x O 400
    40800
    Q2
    Annual Demand 4000
    Unit Price 40 Total Cost
    Order Cost 20
    Storage Cost 7% PA
    Interest Rate 3% PA

    R 4000 Units
    Unit Price 40 Rs
    Carrying Cost 10% of Unit Price 4

    2xAxO 160000
    C 4 40000
    EOQ 200

    Carrying Cost EOQ /2 x C 400

    Order Cost R/EOQ x O 400

    Total Cost Unit Cost 160000


    Carrying Cost 400
    Order Cost 400
    160800
    Purchase Cost A x Unit Price

    Carrying Cost (EOQ / 2) x C

    Order Cost (A/ EOQ ) x O


    Annual Sales 20,000 Units
    Order Cost 2000 Rs
    Per Unit Price 12 Rs
    Carrying Cost 25% of PU

    2
    20000 26666666.7
    2000 5164.0
    3
    The XYZ Ltd. carries a wide assortment of items for its customers.
    One of its popular items has annual demand of 8000 units. Ordering cost per order is found to be Rs. 12.5.
    The carrying cost of average inventory is 20% per year and the cost per unit is Re. 1.00.
    Determine the optimal economic quantity and make your recommendations.
    Company having order options ; 1, 2, 4, 8, 12, 16.

    8000 Lot Size /2 Avg Inv x 20% No fo Order x OC


    No of Order Lot Size Average Inventory CC OC
    1 8000 4000 800 12.5
    2 4000 2000 400 25
    4 2000 1000 200 50
    8 1000 500 100 100
    12 666.67 333.33 66.67 150
    16 500 250 50 200
    er is found to be Rs. 12.5.

    TC
    812.5
    425
    250
    200
    216.67
    250
    Item Name Annual Req Units Rate TC
    D 21000 41 861000 31%
    C 15000 36 540000 19%
    J 9820 33 324060 12%
    I 8900 32.75 291475 10% 72%
    K 6780 31.25 211875 8%
    B 7600 16.75 127300 5%
    N 6590 16.25 107087.5 4%
    A 8000 11.5 92000 3%
    G 4550 19.25 87587.5 3%
    F 4600 17.8 81880 3%
    H 3560 12.5 44500 2%
    E 3400 6 20400 1%
    L 2000 5.75 11500 0.41%
    M 500 7.25 3625 0.13%
    2804290 100.00%

    4 2016535
    14 2804290 29% 72%
    Q2 You are a Store Manager at Maruti Udyog lmited Plant and
    primary task to maintain inventory on prioirty basis
    For that Top level management suggest maintain inventory
    on ABC Basis, Now prepare a report:
    Item Names Annual Demand (Units) Price /Units AXR %
    L 1675 1544 2586200 16%
    N 2100 875 1837500 11%
    M 1973 919 1813187 11%
    K 1345 1245 1674525 10%
    O 1875 775 1453125 9%
    R 1255 765.5 960702.5 6%
    G 960 925.5 888480 6%
    J 1155 765.5 884152.5 6%
    S 955 819.9 783004.5 5%
    Q 1150 575.5 661825 4%
    H 695 875.5 608472.5 4%
    I 865 655 566575 4%
    P 1245 375 466875 3%
    C 1800 156.5 281700 2%
    B 1560 145.5 226980 1%
    A 1200 135.5 162600 1%
    F 890 112.5 100125 1%
    E 475 111 52725 0%
    D 350 108.9 38115 0%
    16046869 100%
    CF
    16% Item % Cost %
    28% 4 21% 50% 8023435
    39% 5 26% 30%
    49% 10 53% 20% 3209374
    58% 19 100% 16046869
    64%
    70%

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