Question

From the following data, find out Economic Order Quantity.
Annual usage = 6,000 units
Cost per unit = Rs. 0.30
Buying cost = Rs. 7 per order
Carrying cost = 15% of average inventory holding ​

Answer 1

Answer:

EOQ= √2Ao /C

A= 6,000

O= ₹7

C= 15% (0.15)

Now,

√2*6,000*7/.15

= 748 units (Ans)

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