Question

Annual consumption 1200 units,
Cost per unit = Rs. 40. Cost per
order = Rs. 600, obsolescence
15%; Insurance on inventory 25%
EOQ
O
490 units
450 units
O
300 units
379 units​

Answer 1

Answer:

Step-by-step explanation:

Solution:

Economic Order Quantity (EOQ)

Answer 2

Answer: the correct answer is 379 units.

Step-by-step explanation:

According to the question,

As we know, Calculate Economic Order Quantity (EOQ) from the following

Annual consumption of 1200 units,

Cost per unit = Rs. 40.

Cost per order = Rs. 600,

Obsolescence 15%,

Insurance on inventory 25%

As by EOQ $EOQ =\sqrt{\frac{2 \times AC \times CO}{CU \times O \times Insurance} }$

$EOQ =\sqrt{\frac{2 \times 1200 \times 600}{40 \times 15 \times 25} }$

EOQ = 379 units.

Hence, the correct answer is 379 units.

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