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The annual demand for an item is 10,000 units. The unit cost is Rs. 100 and inventory carrying charges are 14.4% of the unit cost per annum. The cost of one procurement is Rs. 2000. The time between two consecutive orders to meet the above demand is ______, month(s).
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- 2 weeks
- 3 weeks
- 3.5 weeks
- 2.5 weeks
Correct Option: A
D = 10000
C = Rs 100
Ch = 14.4 × C
| ⇒ | × 100 | 100 |
⇒ 14.4
Co = Rs 2000 / order
Time between two consecutive order
| T = | = | years | D | 6 |
| ⇒ | = 2 weeks | 6 |
