Determine the time between orders

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Reference no: EM132589501

a) A particular item has a demand of 9,000 units per year. The cost of one procurement is Kshs. 100 and the holding cost per unit is Kshs. 2.40 per year. The replacement is instantaneous and no shortages are allowed.

Question 1: Determine:

i. The economic lot size

ii. The number of orders per year

iii. The time between orders

The total cost per year if the cost of one unit is Kshs. 1.00

Reference no: EM132589501

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