Discuss the below problem:
Q: Given the following list of items.
Classify the items as A, B or C.
Determine the economic order quantity for each item
| Item |
Estimated annual Demand
|
Ordering cost (AED)
|
Holding cost (%)
|
Unit prize
|
| H5-010 |
20,000 |
50 |
20 |
2.50 |
| H5-201 |
60,200 |
60 |
20 |
4.00 |
| P6-400 |
9,800 |
80 |
30 |
28.50 |
| P6-401 |
14,500 |
50 |
30 |
12.00 |
| P7-100 |
6,250 |
50 |
30 |
9.00 |
| P9-103 |
7,500 |
50 |
40 |
22.00 |
| TS-300 |
21,000 |
40 |
25 |
45.00 |
| TS-400 |
45,000 |
40 |
25 |
40.00 |
| TS-041 |
800 |
40 |
25 |
20.00 |
| V1-001 |
33,100 |
25 |
35 |
4.00 |