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Inventory Control

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Class Item No. Percentage Value in Million Rupees Percentage A 136 4.2 3.12 73.7 B 531 16.8 0.92 21.8 C 2509 79.0 0.19 4.5 Total 100.0 4.23 100.0
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QUALITY COST INVENTORY
Annual Holding Cost A little bit of calculus… Total Annual Cost = Annual Purchase Cost Annual Ordering Cost + + TC = Total annual cost D = Demand C = Cost per unit Q = Order quantity S = Cost of placing an order or setup cost H = Annual holding and storage cost per unit of inventory
 

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Inventory Control

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  • 8. Class Item No. Percentage Value in Million Rupees Percentage A 136 4.2 3.12 73.7 B 531 16.8 0.92 21.8 C 2509 79.0 0.19 4.5 Total 100.0 4.23 100.0
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  • 13. Annual Holding Cost A little bit of calculus… Total Annual Cost = Annual Purchase Cost Annual Ordering Cost + + TC = Total annual cost D = Demand C = Cost per unit Q = Order quantity S = Cost of placing an order or setup cost H = Annual holding and storage cost per unit of inventory
  • 14.