Himalayan Bakers Pvt. Ltd., a mid-sized bakery chain headquartered in Dehradun, produces its signature product "Multigrain Loaf" for retail and…

Himalayan Bakers Pvt. Ltd., a mid-sized bakery chain headquartered in Dehradun, produces its signature product "Multigrain Loaf" for retail and hotel supply. Each loaf requires 2.5 kg of Multigrain Flour Mix (MFM) as the key raw material. Based on a sales forecast prepared by the company's regional sales heads (factoring in new hotel contracts and an upcoming bakery outlet expansion), Himalayan Bakers expects to sell 12,000 units of Multigrain Loaf in the coming financial year. The purchase manager, Ms. Tanya Bhatt, has compiled the following details regarding MFM from the stores and finance departments: Particulars Details (i) Re-order Quantity 280 kg less than the EOQ (ii) Maximum consumption per day 25 kg more than the average consumption per day (iii) Opening stock of MFM 1,200 kg (iv) Lead time from suppliers Minimum 3 days, Maximum 7 days (v) Purchase price of MFM ₹95 per kg (vi) Opening stock of finished Multigrain Loaves 1,100 units (vii) Bank's Cash Credit interest rate (treated as carrying cost %) 14.4% per annum (viii) Documentation/paperwork cost per order ₹540 (Assume 364 days in a year for all calculations and also assume that henceforth, the closing stocks are not required.) You are required to answer the following questions (MCQs 6 to 10)