Page 280 - DCOM303_DMGT504_OPERATION_RESEARCH

Units
5,000
10
A Annual consumption in units Price per unit (Rs.)
B 650 10
C 1,800 18
D 1,200 1
E 60 8
F 6,500 6
Unit 13: Inventory Control
G 2,500 5
H 4,200 1
I 50 10
J 100 7
K 50 35 Notes
L 2,000 8
M 20 25
N 30 10
O 80 6
P 200 0.15
Q 750 0.50
R 300 4.00
S 100 7.00
T 20 10.00

Monetary limits:
Less than ` 1,000……………...C
` 1,001 – 4,000 …….B
` 4,001 – 7,000……..A

Solution:
Calculation of Consumption Value

Name of the Annual Price Per unit Consumption Ranking
material consumption (`) value (`)
A 5,000 10 50,000 I
B 650 10 6,500 V
C 1,800 18 35,400 III
D 1,200 1 1,200 X
E 60 8 480 XIII
F 6,500 6 39,000 II
G 2,500 5 12,500 IV
H 4,200 1 4,200 VI
I 50 10 500 XII
J 100 7 700 XI
K 100 35 3,500 VII
L 50 8 400 IVX
M 2,000 25 50,000 I
N 20 10 200 VX
O 30 6 180 VIX
P 80 0.15 12 VIIIX
Q 200 0.50 100 VIIX
R 750 4.00 3,000 VIII
S 300 7.00 2,100 IX
T 20 10 200 VX

Frequency Distribution

Monetary limits Frequency occurance Category
Up to 1,000 9 C
Between 1,001 To 10,000 6 B

Above 10,001
5 A

LOVELY PROFESSIONAL UNIVERSITY 275