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  • PPIC Inventory

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    Sandeep Satapathy
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    The document presents an inventory control chart and cost analysis for a product with an annual demand of 4000 units. It compares the total carrying costs, total ordering costs, and total costs for 7 different order quantities ranging from 50 to 2000 units. The total cost is minimized at an order quantity of 200 units, with a total cost of ₹2,500.

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    PPIC-Inventory

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    The document presents an inventory control chart and cost analysis for a product with an annual demand of 4000 units. It compares the total carrying costs, total ordering costs, and total costs for 7 different order quantities ranging from 50 to 2000 units. The total cost is minimized at an order quantity of 200 units, with a total cost of ₹2,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    PPIC Inventory

    Uploaded by

    Sandeep Satapathy
    The document presents an inventory control chart and cost analysis for a product with an annual demand of 4000 units. It compares the total carrying costs, total ordering costs, and total costs for 7 different order quantities ranging from 50 to 2000 units. The total cost is minimized at an order quantity of 200 units, with a total cost of ₹2,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Annual Demand 4000

    Inventory Control Chart


    Carryong Cost/unit/year ₹ 5.00
    Ordering Cost/order ₹ 100.00

    C1 C2 C3 C4 C5 C6 C7
    Order Quantity (Q) 50 100 200 400 500 1000 2000
    Total Carrying Cost (Cc) ₹ 125.00 ₹ 250.00 ₹ 500.00 ₹ 1,000.00 ₹ 1,250.00 ₹ 2,500.00 ₹ 5,000.00
    Total Ordering Cost (Co) ₹ 8,000.00 ₹ 4,000.00 ₹ 2,000.00 ₹ 1,000.00 ₹ 800.00 ₹ 400.00 ₹ 200.00
    Total Cost (TC) ₹ 8,125.00 ₹ 4,250.00 ₹ 2,500.00 ₹ 2,000.00 ₹ 2,050.00 ₹ 2,900.00 ₹ 5,200.00

    Inventory Cost Chart


    ₹ 9,000.00
    ₹ 8,000.00
    ₹ 7,000.00
    ₹ 6,000.00
    ₹ 5,000.00
    ₹ 4,000.00
    ₹ 3,000.00
    ₹ 2,000.00
    ₹ 1,000.00
    ₹-
    0 500 1000 1500 2000 2500

    Carrying Cost Ordering Cost Total Cost

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