An average annual consumption of a material is 18,250 units at a price of ETB 36.50 per unit. The storage cost is 20% of an average inventory and the cost of placing an order is ETB 50. How much quantity is to be purchased at a times?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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An average annual consumption of a material is 18,250 units at a price of ETB 36.50 per unit. The storage cost is 20% of an average inventory and the cost of placing an order is ETB 50. How much quantity is to be purchased at a times?
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