CAOR451 Operational Research

Operational ResearchTU Board 2024

Explain ABC inventory planning system. An auto industry purchases spark plugs at the rate of Rs 25 per piece. The annual consumption of spark plug is 18000 numbers. if the ordering cost is Rs 250…

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Explain ABC inventory planning system. An auto industry purchases spark plugs at the rate of Rs 25 per piece. The annual consumption of spark plug is 18000 numbers. if the ordering cost is Rs 250 per order and carrying cost is 25% p.a., what would be the EOQ? If the supplier of spark plugs offers a discount of 5% for order quantity of 3000 numbers per order, do you accept the discount offer? [1+4]

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