Question

a manufacturer buys certain equipment form suppliers at rs. 30 per unit. total annual needs are 800 units. the following further data are available: annual return on investments 10% rent, insurance, storing per unit per year rs. 2 cost of placing an order rs. 100 required: find economic order quantity​

Answer 1

Answers

I think I don't know

Answer 2

Given: Total annual needs are $800$units, the annual return on investments $10$%, rent, insurance, storing per unit per year Rs.$2$, cost of placing an order Rs.$100$

We have to find the economic order quantity​.

For this, we are using the formula of economic order quantity​ i.e.

$E O Q=\sqrt{\frac{2 * R U^{*} O C}{U C^{*} C C \%}}$

We have,

$=>E O Q=\sqrt{\frac{2 * R U^{*} O C}{U C^{*} C C \%}}\\\\=>E O Q=\sqrt{\frac{2 \times 800 \times 100}{2}}\\\\=>E O Q=200 \text { Units }$

Hence, economic order quantity​ is$E O Q=200 \text { Units }$.