Question

From the following particulars, calculate the Economic Order
Quantity :
Annual requirement : 1,600 units
Cost of material per unit : Rs. 40
Cost of placing and receiving one order : Rs. 50
Annual carrying cost : 10% of inventory value.

Answer 1

these is your answer to a question, statement, or situation.

"he knocked and entered without waiting for an answer"

Answer 2

Answer:

200units

Explanation:

Given data: Demand D- 1600 units

ordering cost Co- 50r.s

carrying/holding cost Cc- 10% of

inventory cost

Inventory cost- 40r.s

so, Cc= 10/100×40

Cc =4r.s

EOQ=✓2D*Co/Cc

=✓2*1600/4

=✓40,000

=200 units.

:- the total Economical Ordering Quantity is 200units.