Question: Question 3 DoT Enterprises has just employed a new managing director On his first day he consults…

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Jun 13, 2022

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Question: Question 3 DoT Enterprises has just employed a new managing director On his first day he consults…

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Question 3 DoT Enterprises has just employed a new managing director On his first day he consults with you and is very concerned about the basic order quantty of 400 units of a certain raw material He is also concerned about the number of orders and the time penod between the orders for this matenal As he is an accountant by profession, he asks you the following questions a) what is the impact f the demand is increased by 400% ? What is the impact if the ordering cost is reduced to 25% ? what is the impact rf the holding cost is reduced to 25% ? Provide your answers related to the impact on optimum order quantities, number of orders and time between the orders Advise him on the best option

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Question 3 DoT Enterprises has just employed a new managing director On his first day he consults with you and is very concerned about the basic order quantty of 400 units of a certain raw material He is also concerned about the number of orders and the time penod between the orders for this matenal As he is an accountant by profession, he asks you the following questions a) what is the impact f the demand is increased by 400% ? What is the impact if the ordering cost is reduced to 25% ? what is the impact rf the holding cost is reduced to 25% ? Provide your answers related to the impact on optimum order quantities, number of orders and time between the orders Advise him on the best option

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