Following is the information relating to a type of material:
|
Annual demand |
2,400 units |
|
Unit price |
Rs. 2.40 |
|
Ordering cost per order |
Rs. 4.00 |
|
Storage cost |
2% p.a. |
|
Interest rate |
10% p.a. |
|
Lead time |
Half month |
Calculate EOQ and total annual inventory cost