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TC
300 -499
= RM 51153.33
TC
500
= RM 50468
Q5
TC = RM 3033
Q6
TC = RM 1124.1
N = 13 orders
5
Q
Inventory Level (units)
Q7
a. Q = 4874
b. TC = RM 861.86
c. N = 2 times
Q8
40000 6000
Quantity Differents 100% 85%
40000
x
Total Cost Differents = 60150 - 6000= RM 54150
Q9
TC
optimal
= RM 14784
TC
Q=500
= RM 14062
Annual total cost for Q=500 is less then Q= 400, TC
Q=500
< TC
Q=400,
Thus, the discount accepted and the order quantity should be 500 units.
Q10
D= 12 000 units
LT= 4 days
ROP = d x L
12000
48
250
d
ROP = 48 x 4 = 192 units
Reorder Point Curve
ROP = 192
L = 4
Time (days)