Question

(b)
A Shipbuilding firm uses rivets at a constant rate of 20,000 numbers per year.
Ordering costs are Rs.30 per year. The rivets cost Rs.1.5 per number. The holding
cost of rivets is estimated to be 12.5% of unit cost per year. Determine the EOQ.​

Answer 1

Answer:

12.5% of 20,031.5

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