A manufacturer buy a critical component from one of the key suppliers. The operation
has estimated that the firm
needs 7,200 units, if the
annum and It cost 20 naira, per unit
The firm spends Aloo each time it place
an order. While it Cost 20% to keep a
unrt of the item in the Inventay
per annum. If the Compary operate
for 360days per year & the lead time is six (6) days. You are
required to determine
1. the optical Cost size
2. Annual Holding Cost
3. Total ordening Cost
4 Number of
of Order per annum
5.Time between orders
6.Re-Order point