Question

18.
If bi-monthly, consumption is 500 units, how many units should be taken in
the formula of EOQ?
(A) 3,000 units
(B) 6,000 units
(C) 500 units
(D) 2,000 units​

Answer 1

Answer:

The units to be taken in the formula is (A) $3000$ units.

Step-by-step explanation:

Given: The Bimonthly consumption of $500$ units and four options of different units.  

To find: The number of units to be taken in the EOQ formula.

Solution:

EOQ is calculated to find out the ideal quantity that is required to be ordered by them to fulfill their requirements.

EOQ formula = $\sqrt{\frac{2 X AR X OC}{CC} }$

where:

AR is the setup costs

OC is the demand rates

CC is the Carrying cost.

The number of units has to be calculated on an annual basis.

Monthly consumption is $\frac{500}{2}$ (Bi-monthly consumption so divided by $2$).

Monthly consumption is $250$ units.

Annual consumption is $250$ × $12$ $= 3000$ units.

Therefore, the units that should be taken in the formula are (A) $3000$ units.

PROJECT CODE: #SPJ1

Learn more about EOQ here:

https://brainly.in/question/5367215

https://brainly.in/question/34522334