Question

+ A manufactuser users 200 units of a component every
month and he buys them ontinely from outside Supplies
The order plucing and receiving cost is Rs, 100 annual Cerrying cost is Rs. 12. from this set of deetce calculate the Economic Order Quentity.

Answer 1

Explanation:

The optimum quantity to order is:

The optimum quantity to order is:In this method carrying cost is calculated on average i.e. 1/2 of quantity purchased. The least of ordering cost and carrying cost taken together will be the EOQ.

Answer 2

Answer:

Multiply the demand by 2, then multiply the result by the order cost. Divide the result by the holding cost. Calculate the square root of the result to obtain EOQ.

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