Question

Calculate the no of order to be placed in a year if Annual Consumption-12000 units, Ordering Cost- Rs. 12 per order, Cost per unit- Re 1, Inventory carrying charge-20%

Answer 1

Answer:

b) P. Ltd. uses three types of materials A, B & C for production of X, the final product.

Explanation:

A) manufacturer uses 200 units of a component every month and he buys them entirely from outside supplier. The order placing and receiving cost is Rs.100 and annual carrying cost is Rs.12. From this set of data calculate the Economic Order Quantity.