Fewpal
0 votes
29 views
in Statistics by (64.3k points)

The annual demand for an item is 3000 units. Capital cost is Rs. 7 per unit. Inventory carrying cost is 20% of capital cost per annum. If set up cost is Rs. 150, determine 

1. EOQ 

2. Number of orders per year 

3. Optimal cost

1 Answer

+1 vote
by (59.5k points)
selected by
 
Best answer

Given R = 3000, p = 7,1 = 20% c3 = 150.

 (Shortages are not given use EOQ model 1)

1. EOQ : Q° = \( \sqrt\frac{2C_3R}{C_1}\)

C1 = p1 = 7 × \(\frac{20}{100}\) 

Q° = \( \sqrt\frac{2\times 150 \times 300}{1.4}\)

2. n° =\(\frac{2R}{Q°}\) = \(\frac{300}{801.78}\) = 3.4 orders

3. C(Q°) = \( \sqrt{2\times 150 \times 300\times1.4}\)

= Rs. 1122.50

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...