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Semi Variable Costs
Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity. They are variable inside specific activity levels however are fixed in other activity levels, as displayed below:
Figure : Semi Variable Cost
What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost? What does this suggest about the importance of supply chain managem
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ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT = RS.4.00/- UNIT PRICE = RS 2.40/- STORAGE COST = 2% P.A INTEREST RATE = 10 % P.A LEAD TIME = HALF MONTH CALCULATE ECONOMIC ORDER
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