Question

• A firm's Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. • What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point. What is the annual demand to production ratio in this case. What does it indicate for the company? Plz give solution, how to solve it? ​

Answer 1

Explanation:

We need to find value of (9

4/3

÷27

2/3

)×3

3/2

9

4/3

=3

8/3

and 27

2/3

=3

6/3

So,

3

6/3

3

8/3

= 3

8/3−6/3

= 3

2/3

,

⇒3

2/3

.3

3/2

= 3

(2/3+3/2)

= 3

13/6