If we increase the inventory then what would be the-01807
This subjective question is related to the book/course
vu mcm411 Introduction to Broadcasting.
It can also be found in
vu mcm411 Mid Term Solved Past Paper No. 2.
Question 1: If we increase the inventory, then what would be the proportionate effect on the followings. Give proper reason in each case.
- (i) Shortage Cost.
- (ii) Ordering or Setup Cost per unit time.
- (iii) Holding Cost.
Answer:
Shortage Cost
When we increse the inventory the shortage cost will decrease.If we have much inventory then we dont need to giv cost for overtim requirements due to shortage nd also will not bear clerical nd adminitrator expenses.
Ordering or Setup Cost per unit time
When we incraese the inventory the ordering cost C2 will also b increased. If the items r inventory incrased then tsting nd training costs will also increased.
