Question

For A Ltd Annual demand is 10000 units ,carrying cost is 2 Rs pe runit and order cost is Rs 50.Calculate the EOQ?

Answer 1

707.10 is the ans ......

Answer 2

EOQ = 10√50

GIVEN: For A Ltd Annual demand is 10000 units, carrying cost is 2 Rs per unit, and order cost is Rs 50.
TO FIND: EOQ
SOLUTION:
As we are given,

The annual demand is 10000 units         (D)

The Order cost is Rs 50                            (B)

The Carrying cost is 2                               (C)

Also, we know,

EOQ = √2*D*B/I*C

EOQ = √ 2*10000*50/2

EOQ = √1000000/2

EOQ = √500000

EOQ = 10√50

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