From the following particulars in respect of a material, compute the Economic Ordering Quantity by preparing a table.
|
Ordering Quantities |
Price Per Kg. [Rs.] |
|
Less than 250 |
6.00 |
|
250 and less than 800 |
5.90 |
|
800 and less than 2000 |
5.80 |
|
2000 and less than 4000 |
5.70 |
|
4000 and above |
5.60 |
The annual demand for the material is 4000 kg. Stock holding costs are 20% of the material cost per annum. The ordering and receiving costs are Rs.10 per order.