• 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?
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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
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