Practical Process of RMG Industry

Calculation of Soda Ash Light

Calculation of Soda Ash Light
Calculation of Soda Ash Light:

Qopt= (2DS/H) ½
Q opt= Economic Order Quantity,
D= Annual Demand,
S= Order or Setup Cost,
H= Annual Holding Cost.

R= d*L
d=average daily demand.
L= lead time

Qopt= {(2*169330.1*33872)/4.06}1/2

Qopt=  53154.432 KG

S( Order or Setup Cost)= L/c placing cost+L/c opening and acceptance charge+ Bank document charge+ C & F charge+ Insurance Charge

S=9200+3100+16595+4977=33872 tk (conversion factor=82 tk)

This price is considering invoice number:EAAB120406

H( Annual Holding Cost)= space utilization *fare+loading unloading charge+salary+transportation cost
Tota; holding cost considering 63 ton=115200 tk+118300 tk+224400 tk+229500=687400 tk

So, H(annual holding cost)=687400/169330=4.06 tk/kg

d(avg daily demand)=169330.1/365=463.92 kg/day
L(lead time)=40 days

R=463.92*40=18556.0 kg

Others Calculation:

Yarn                400%  
Chemicals        200%  
Greige             170%              
Finished          180 %             
Others             050%              

Capacity :
Salt 5000 ton
Soda 800 ton
Others 1300 ton
Dyes 500 ton

Rent  Tk. 8.00 p/sft.

L/C placing cost:
Bank : L/C opening & acceptance charge
L/C value x 0.06%
Bank charge 31000.00 ( Foreign document)
Bank charge   4000.00 ( Local document)

C&F Charge :
L/C value x 1.1%
Insurance : L/C value x .33%
Transport : upto 10 ton Tk. 1300000.00

Engr. Kh. Mashiur Rahman Email:

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