2. NO.1
• FIND THE OPTIMAL ORDER QUANTITY
FOR THE FOLLOWING PRICE BREAK
INVENTORY PROBLEM:
– ANNUAL DEMAND=200 UNITS
– INVENTORY CARRYING COST= 25%
– ORDERING COST=Rs.20 PER ORDER
QUANTITY PRICE IN RUPEES
0<Q<50 10
50<=Q<100 9
OVER 100 8
3. NO.2
• NBC LIMITED HAS TO SUPPLY ORIENT FANS
WITH 24,000 BEARINGS PER YEAR ON A
STEADY DAILY BASIS.IT IS ESTIMATED THAT IT
COSTS Rs.1.20 AS INVENTORY HOLDING COST
PER BEARING PER YEAR AND THE SET UP COST
PER RUN OF BEARINGS MANUFACTURE IS Rs.
324.WHAT SHOULD BE THE OPTIMAL RUN SIZE
FOR BEARING MANUFACTURE? FIND OUT THE
MINIMUM INVENTORY COST.WHAT WOULD
BE THE INTERVAL BETWEEN TWO
CONSECUTIVE OPTIMAL RUNS?
4. NO.3
• THE ANNUAL REQUIREMENT OF AN ITEM IS
12000 UNITS,EACH COSTING Rs. 6.ORDERING
COSTS ARE Rs.200 PER ORDER AND
INVENTORY CARRYING COSTS ARE 20% OF
THE AVERAGE INVENTORY HELD.DETERMINE
THE ECONOMIC ORDER QUANTITY AND THE
TOTAL INVENTORY COST. SHOULD THE ITEM
BE PURCHASED IN LOTS OF 6,000 AT A TIME IF
THE PRICE PER UNIT IS REDUCED BY 5% FOR
THIS QUANTITY?
5. NO.4
• THE PURCHASING MANAGER OF A CHEMICAL
PLANT IS CONSIDERING THREE SOURCES OF
SUPPLY FOR SPECIALLY COATED METAL
CONTAINERS.
SUPPLIER QUANTITY PRICE
A ANY QUANTITY 150
B 150 OR MORE 125
C 250 OR MORE 100
• THE ANNUAL REQUIREMENT OF THE PLANT IS
1500 CONTAINERS.OREDRING COSTS IS Rs.400
AND CARRYING COSTS ARE 40% OF THE UNIT
PRICE.WHICH SUPPLIER SHOULD BE GIVEN
THE CONTRACT FOR THE SUPPLY OF
CONTAINERS?
