Question

A company buys 90,000 shipping container every year and other costs are as follows:
(i) Cost of container = Rs. 500 / Piece
(ii) Cost of order placement = Rs. 90 / Order
(iii) Inventory carrying cost = 20%
Calculate: (i) EOQ and (ii) Total number of orders to be placed.​

Answer 1

Answer:

(iii) inventory carrying cost =20%