Math, asked by kadumanali48, 3 months ago


About 2025 units are
required monthly for a
machine. A fixed cost of
Rs. 40 per order is
incurred for placing an
order. The carrying cost
of material per unit
amounts to Rs. 2.4 per
annum.compute EOQ.
2025 Units
D​

Answers

Answered by abimanyupradhan1
0

Step-by-step explanation:

please make me as braniest

Attachments:
Answered by steffiaspinno
0

EOQ for this situation is 63.64

Explanation:

  • If we denote
  1. D: Annual Quantity Demanded
  2. Q: Volume per Order
  3. S: Ordering Cost (Fixed Cost)
  4. C: Unit Cost (Variable Cost)
  5. H: Holding Cost (Variable Cost)
  6. i: Carrying Cost (Interest Rate)
  • We have been Given H = 2.4, S = 40, D = 2025
  • We have the Formula     EOQ = \sqrt{\frac{2SD}{H}}

  • Therefore   EOQ = \sqrt{\frac{2\times 40 \times 2025}{2.4}}  = 63.639610306

IMPORTANT DEFINITIONS:

"The abbreviation (EOQ) stands for "economic order quantity." It's a measure used in supply chain management, operations, and logistics."

Similar questions