Fakhir industry purchases a certain product 'OMEGA' in lots of 9600 units which meets six month requirement. The cost per unit is Rs. 40, ordering cost is Rs. 75 per order and carrying cost is \( 20 \% \). Required: Calculate savings per year by buying in the most economical lots. (10 marks)
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Since the lots purchased meet a six-month requirement, we need to calculate the demand for six months and then multiply it by 2 to get the annual demand. Demand for six months = 9600 units Annual demand = 2 * 9600 units = 19200 units Show more…
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