Question

A purchase manager places order each time for a lot of 500 units of a particular item From
the available data the following results are obtained
Ordes cost per order = Rs. 600
Cost per unit = Rs. 50
Anmal demand = Rs. 100
Inventory carrying cost = 40%​

Answer 1

Answer:

eoq = √2AO/C = √2*100*600/20 = 245 units