MATERIALS CHAPTER OF COST & FM

This query is : Resolved 

18 February 2009 IF IN A PARTICULAR QS-
FOR EG-
AN ENTERPRISE MANUFACTURES A SPECIAL PRODUCT "ZED" THE FOLOWING PARTICULARS HAVE BEEN GIVEN
MONTHLY DEMAND OF ZED -1000 UNITS
NORMAL USAGE 50000 UNITS PER WEEK

SO IN ORDER TO FIND OUT ANNUAL CONSUMPTION FOR CALCULATING EOQ WHAT WILL WE USE WHETHER MONTHLY DEMAND OR NORMAL USAGE ? THIS IS A GREAT CONFUSION AS IN THE STUDY MATERIAL-NORMAL USAGE HAS BEEN TAKEN WHILE IN THE SCANNER- MONTHLY DEMAND HAS BEEN CONSIDERED

18 February 2009 We have look into the usage not the "demand" of the product.
It is given to divert the attention of the student.

19 February 2009 Monthly demand to be considerd as formula says annual demand.so go for it


19 February 2009 Its not annual demand but annual requirement.



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