Question

2 The following details are available in respect of a firm
(a) Inventory requirement per year 6000 units
(b) Cost per unit (other than carrying and ordering costs- Rs 10
(c) Carrying costs per item for one year- Rs 5
(d) Cost of placing each order is Rs 100
(e) Alternative order size (units)-7000,4000, 2000,1200,1000,600 and 200
Compare orders and decide which order will you consider economical and why?​

Answer 1

Answer:

carrying cost is 10% of average inventory value and purchase cost is `10 per unit. What will be the EOQ of the product? [2]. Answer: Annual ...