-0.

152
2000
1 2 3 4 5 6 7 8 9
2000 1800.004 1692.418 1620.007 1565.981 1523.179 1487.905 1458.009 1432.139

1 2000 13 1354.287
2 1800.004 14 1339.117
3 1692.418 15 1325.147
4 1620.007 16 1312.211
5 1565.981 17 1300.175
6 1523.179 18 1288.928
7 1487.905 19 1278.378
8 1458.009 20 1268.45
9 1432.139 21 1259.078
10 1409.386 22 1250.206
11 1389.115 23 1241.788
12 1370.864 24 1233.78
 10 11 12 13 14 15 16 17 18 19
1409.386 1389.115 1370.864 1354.287 1339.117 1325.147 1312.211 1300.175 1288.928 1278.378
 20 21 22 23 24
1268.45 1259.078 1250.206 1241.788 1233.78
 6000000 1000000 1000000
120 120 254895
22.00% 0.22 200000
($124,018.13) 0
($1,529,369.89) ($254,894.98) 6000000
7454895
 MR1 MR2 Type 1 type 2 type3
Demand 10000 15000
price 8500 12500
Rejection 0.50% 0.50% 50 75
cost 100 175 5500
No. of boards 1 1 10
no. of boxes 25000 25000 2500
Total cost 2500000 4375000 13750000
cost of rejection 1362500 0 0
 18 feet 382 1270 15
20 feet 425 1270 17
22 feet 469 1270 16

18 feet 20 feet 22 feet

No. of
container 4 3 3
Dist 250 250 250

Item 1 11,058.00 12,899.00 12,595.00 15,532.00 12,786.00 13,021.00 14,260.00 14,864.00

Item 2 2,180.00 2,854.00 2,937.00 3,071.00 1,585.00 1,390.00 2,433.00 3,233.00
Item 3 28 4,253.00 12,683.00 7,153.00 11,160.00
Item 4 3,499.00 5,931.00 4,474.00 5,595.00 3,606.00 3,505.00 4,435.00 5,016.00
Item 5 2,675.00 5,484.00 2,627.00 2,445.00 2,044.00 2,071.00 2,737.00 2,567.00
Item 6 131 287 270 311 148 232 314 268
Item 7 4,608.00 4,582.00 9,204.00 9,727.00 6,077.00 8,016.00 10,104.00 10,220.00
Item 8 3,024.00 1,768.00 4,563.00 2,078.00 677 2,989.00 1,754.00 2,456.00
Item 9 743 537 891 522 719 834 1,238.00 947
Item 1 0 2,345.00 2,867.00 1,489.00 3,187.00 2,150.00 2,722.00 1,867.00
15,067.00 12,914.00 13,365.00 15,338.00 13,641.58 1,092.25
2,868.00 2,970.00 2,202.00 2,234.00 2,496.42 584.83
15,621.00 19,131.00 921 2,705.00 8,183.89 6,412.23
4,349.00 3,404.00 3,656.00 3,812.00 4,273.50 822.9
2,702.00 3,590.00 3,199.00 3,051.00 2,932.67 909.99
223 306 200 276 247.17 49.56
6,973.00 10,795.00 6,679.00 10,504.00 8,124.08 1,997.37
2,278.00 3,219.00 2,345.00 2,468.27 980.04
459 855 1,167.00 810.18 250.41
2,439.00 1,196.00 2,380.00 2,100.00 1,939.00 2,223.42 562.82
Ordering cost
Item of expenditure Charging
Amount Basis Amount Charged Charged to
Stationary 1,854,000.00 4.50% 83,430.00
Telephone 1,095,600.00 16.00% 175,296.00 Ordering cost
Taxi 1,145,000.00 8.00% 91,600.00 Ordering cost
Postage 330,000.00 9.00% 29,700.00 Ordering cost
Courier 380,000.00 10.00% 38,000.00 Ordering cost

Freight Demurrage 655,400.00 40.00% 262,160.00

Salary Purchase (Managers spend 60% of time on
this activity (assumed)
Senior Manager 540,000.00 60.00% 324,000.00 Ordering cost
Manager 360,000.00 60.00% 216,000.00 Ordering cost
Buyers (4) 960,000.00 100.00% 960,000.00 Ordering cost
Clerks (2) 288,000.00 100.00% 288,000.00 Ordering cost
Salary IG Stores
Assistant Manager 66,000.00 100.00% 66,000.00 Ordering cost

Inspector 60,000.00 100.00% 60,000.00 Ordering cost

Clerk 42,000.00 100.00% 42,000.00 Ordering cost
Load/Unload 28,800.00 100.00% 28,800.00 co
worker
TOTAL 2,664,986.00

No of purchase 450
orders generated
Cost of ordering 5922.19

Holding Cost
Item of expenditure Charging
Amount Basis Amount Charged Charged to
Stationary 1,854,000.00 4.50% 83,430.00 Holding Cost

Insurance premium 742,500.00 100.00% 742,500.00 Holding Cost

Fork lift
maintenance 765,000.00 35.00% 267,750.00 Holding Cost
batteries
replacement 1,224,500.00 40.00% 489,800.00 Holding Cost
Tractor
maintenance 149,000.00 75.00% 111,750.00 Holding Cost
Air conditioning 645,000.00 10.00% 64,500.00 Holding Cost
Utilities 2,235,400.00 7.00% 156,478.00 Holding Cost
Salary Stores
Manager 360,000.00 100.00% 360,000.00 Holding Cost
Assistant Manager 28800000.00% 100.00% 288,000.00 Holding Cost
Clerk, Inspector 360,000.00 100.00% 360,000.00 Holding Cost
Fork lift truck
operators (3) 136,000.00 100.00% 136,000.00 Holding Cost
TOTAL 3,060,208.00

Total value of the

inventory 35,000,000.00

Expenditure in % 8.74
value of inventory