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  • Calculation of Inventory Cost

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    durgaselvam
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    This document contains a table that calculates the total inventory cost based on order size, acquisition cost per order, carrying cost per year, number of orders, carrying cost per order, average inventory, and total carrying cost. It shows that as the order size decreases and the number of orders increases, the total cost first decreases then increases, with an optimal order size of 400 units resulting in the lowest total cost of $400.

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    13.Inventory Cost

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    This document contains a table that calculates the total inventory cost based on order size, acquisition cost per order, carrying cost per year, number of orders, carrying cost per order, average inventory, and total carrying cost. It shows that as the order size decreases and the number of orders increases, the total cost first decreases then increases, with an optimal order size of 400 units resulting in the lowest total cost of $400.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Calculation of Inventory Cost

    Uploaded by

    durgaselvam
    This document contains a table that calculates the total inventory cost based on order size, acquisition cost per order, carrying cost per year, number of orders, carrying cost per order, average inventory, and total carrying cost. It shows that as the order size decreases and the number of orders increases, the total cost first decreases then increases, with an optimal order size of 400 units resulting in the lowest total cost of $400.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    CALCULATION OF INVENTORY COST

    INVENTORY REQUIREMENT
    ORDER SIZE(UNITS)
    ACQUISATION COST (RS/ORDER)
    CARRYING COST(PER YEAR/ITEM)

    NO OF ORDER
    COST PER ORDER
    TOTAL ORDERING COST
    CARRYING COST PER ORDER
    AVERAGE INVENTORY
    TOTAL CARRYING COST
    TOTAL COST

    1600
    1600
    50
    1

    1600
    800
    50
    1

    1600
    400
    50
    1

    1600
    200
    50
    1

    1
    50
    50
    1
    800
    800
    850

    2
    50
    100
    1
    400
    400
    500

    4
    50
    200
    1
    200
    200
    400

    8
    50
    400
    1
    100
    100
    500

    VENTORY COST
    1600
    100
    50
    1

    16
    50
    800
    1
    50
    50
    850

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