1. EOQ units 1,500, Price per unit Rs. 10, Order cost per order Rs. 30. Carrying cost per unit Re. 1 Stoc Find out : (1) Usage per annum (2) No. of orders per year (3) Time lag between two orders.
Answers
Answer:
Given:
The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit.
To find:
The Economic Order Quantity (EOQ) for an annual demand of 2000 units
Solution:
To solve the above-given problem we will use the following formula:
\boxed{\bold{Economic\:Order\:Quantity(EOQ) = \sqrt{ \frac{2 \times D\times S}{H}} }}}
Where:
D = Annual demand per unit
S = ordering cost per purchase order
H = Annual inventory carrying cost per unit
Here we are given,
D = 2000 units
S = Rs. 400
H = Rs. 10
Now, on substituting the given values in the formula of EOQ, we get
EOQ = \sqrt{ \frac{2 \times D\times S}{H}} = \sqrt{ \frac{2 \times 2000\times 400}{10} } = \sqrt{ 2 \times 200\times 400 } = \bold{400}EOQ=
H
2×D×S
=
10
2×2000×400
=
2×200×400
=400
Thus, the Economic Order Quantity (EOQ) for an annual demand of 2000 units is → 400.
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