KL Limited produces product 'M' which has a quarterly demand of 8,000 units. The product...
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KL Limited produces product 'M' which has a quarterly demand of 8,000 units. The product requires 3 kg. quantity of material 'X' for every finished unit of product. The other information are follows: : ost of material 'X' rost of placing an order Carrying Cost You are required: 20 per kg. 1,000 per order 15% per annum of average inventory (i) Calculate the Economic Order Quantity for material 'X'. (ii) Should the company accept an offer of 2 percent discount by the supplier, if he wants to supply the annual requirement of material 'X' in 4 equal quarterly installments
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