Question

17. A factory requires 1,500 units of
an item per month. The cost of each
unit is '27. The cost per order is '150
and material carrying charge works
out to 20% of the average material.
Find out the economic order quantity
(EOQ) and ascertain the number of
orders to be placed per year. Would
you accept a 2% price discount on a
minimum supply of 1,200 units?
​

Answer 1

Answer:

When no discount is available Annual requirement 1500 units × 12 = 18,000 units EOQ = 2 × U × P / S = 2 × 18000 × 150 = 540000 = 10000000 = 1000 units ...