Skylark Electronics Company assembles and sells laptops in India. An important component of laptop is it's rechargeable battery. The company buys…

Skylark Electronics Company assembles and sells laptops in India. An important component of laptop is it's rechargeable battery. The company buys its monthly requirement of 4,500 batteries and it would buy its annual requirement in 10 equal instalments. The purchase cost of one battery is 800. The batteries are used evenly throughout the year in the assembling process on 360 days per year. The ordering cost is 9000 per order and the inventory carrying cost is 37.50% per annum. The high carrying cost results from the need to keep the batteries in carefully controlled temperature under humid conditions along with high cost of insurance. Delivery of the batteries from the vendor generally takes 6 days but it may go up to as much as 10 days. The days of delivery time and percentage of their occurrence are shown in the table below: Delivery Time (Days) 6 7 8 9 10 Percentage of Occurrence (%) 70 15 5 5 5 On the basis of above case scenario, you are required to answer the following MCQs 1 to 5.