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Re: ::::IIVU ASKARII:::: FIN622

CHECK THIS ASAD BAHI... AND PLZ CONFIRM THIS ALSO

Question No: 35    ( Marks: 1 )    - Please choose one

Which of the following is equal to Stock out cost?

► Carrying cost  Safety stock  

► Holding cost  Carrying cost

► Reordering cost  Safety stock

► Carrying cost  Reordering cost



STOCK OUT COST =AC\Q*S*Sc*Ps



AC=ANNUAL CONSUMPTION

Q=ORDER QUANTITY

S=STOCK OUT IN UNITS

Sc=STOCK OUT UNIT COST

Ps= ACCEPTED PROBABILITY OF STOCK OUT


        =2000,00\5000*3000*7*0.05

         =42000

 SAFETY STOCK LEVEL

LET X = SAFETY STOCK THEN


STOCK OUT COST = CARRYING COST * SAFETY STOCK

                      42000         = 2   * X

                         X=42000/2=21000 UNITS

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