Sail E0 Webinar
Question
The demand for soap at a retailer is 40 kg per day. The retailer buys soap from a company in bulk at the
cost of Rs. 50 per kg. The retailer incurs a cost of Rs. 200 to place an order to the company, and a holding
cost of Rs. 0.1 per kg per day to store the soap. The lead time between the placing and receiving of orders
is 3 days. The retailer's current ordering policy is to order 200 kg every 5 days. If the retailer uses an optimum order policy to minimize the total cost, the saving in Rs. in the total
cost as compared to the current policy will be
Options:
A .  10
B .  20
C .  40
D .  50
Answer: Option A


-NA-



Was this answer helpful ?
Next Question

Submit Solution

Your email address will not be published. Required fields are marked *

More Questions on This Topic :


Latest Videos

Latest Test Papers