Question

A company uses 50000 widgets per year which costs rs 10 per piece to purchase . The ordering costs & handling costs is 150 rs per order & carrying costs are 15% per annum find the EOQ ?

Answer 1

Answer:

demand r=50000

handling cost=15%*10=1.5

ordering cost=150/order

Step-by-step explanation:

Eoq=√2*ordering cost*demand÷handling cost

EOQ=√2×150×50000÷1.5=3162.28 units

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Answer 2

Given:

widgests = 50000

cost = Rs 10

ordering cost = Rs 150

carrying costs = 15% per annum

To Find:

EOQ

Solution:

demand 'r' = 50000

handling cost = 15 % of 10 = 1.5

ordering cost = 150 / orders

EOQ =  ($\sqrt{2}$ * ordering cost * demand ) / handling cost

EOQ = (√2 * 150 * 50000 ) / 1.5

EOQ = 3162 . 28 units

So, EOQ = 3162.28 units