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Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from a supplier at a cost of 35 R.O per tire. The Company's inventory carrying cost is estimated to be 15% of cost and the ordering cost is 45 R.O per order. Calculate the EOQ What is the number of orders per year? Compute the average annual ordering cost?

Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from a supplier at a cost of 35 R.O per tire. The Company's inventory carrying cost is estimated to be 15% of cost and the ordering cost is 45 R.O per order. Calculate the EOQ What is the number of orders per year? Compute the average annual ordering cost?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from a supplier at a cost of 35 R.O per tire. The Company's inventory carrying cost is estimated to be 15% of cost and the ordering cost is 45 R.O per order.

  1. Calculate the EOQ
  2. What is the number of orders per year?
  3. Compute the average annual ordering cost?
  4. Compute the average inventory?
  5. What is the average annual carrying cost?
  6. Compute the total cost?                      Please answer complete
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