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A particular item has demand of 3000 units per year. The cost of one procurement is Rs. 100 and the holding cost per unit is Rs. 2.40 per year. The replenishment is instantaneous and no shortages are allowed.
Determine:
(i) the economic order quantity
(ii) the number of orders per year
(iii) the time between orders and
(iv) the optimum cost per year
Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,300, and the company expects to sell 1,480 per year. The company currently sells 1,980 units of its existing model per year..
For decision making for the firm with market power, fixed costs are:
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