Financial ManagementTU Board 2025
Narayani Garden Centers (NGC) sells 580,000 bags of lawn fertilizer annually. NGC requires safety stock of 2,000 bags. Cost of fertilizer is Rs 16 per bag, inventory carrying cost is 10 percent and…
5Narayani Garden Centers (NGC) sells 580,000 bags of lawn fertilizer annually. NGC requires safety stock of 2,000 bags. Cost of fertilizer is Rs 16 per bag, inventory carrying cost is 10 percent and fixed cost for placing and receiving is Rs 50 per order. a. What is the optimal order quantity of lawn fertilizer for NGC? b. What are the total inventory costs of lawn fertilizer for NGC? c. How often must NGC place the order of lawn fertilizer? [2+2+1]
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