A certain item cost Tshs 235 per ton. the monthly requirements are 5 tons and each time the stock is replenished. There is step up of Tshs 1000. the costs of carrying inventory has been estimated at 10% of the value of the stock per year. (a) what is the optimal order quantity? (b) what is the optimal total costs? (c) determine the optimal time between to order. (d) what is the optimal number of order?

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05-05-2021
Business

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A certain item cost Tshs 235 per ton. the monthly requirements are 5 tons and each time the stock is replenished. There is step up of Tshs 1000. the costs of carrying inventory has been estimated at 10% of the value of the stock per year. (a) what is the optimal order quantity? (b) what is the optimal total costs? (c) determine the optimal time between to order. (d) what is the optimal number of order?

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