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Annual consumption = 120 units 2. Price per unit = rupees 20 3. Storage cost as percent of average inventory =12%

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Annual consumption = 120 units 2. Price per unit = rupees 20 3. Storage cost as percent of average inventory =12%
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by (15 points)
Annual consumption= 120 units

Buying cost per unit= Rs. 20

Price per unit= Rs. 100

Storage cost as percent of average inventory= 12%

  Carrying cost= 12/100*100= 12

EOQ=root 2*20*120/12

root 40*120/12

root 4800/12

root 400

20 units
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