Question

If eoq = 360 units order costs are rs. 5 pr order and carrying costs are rs. 0.20 pre unit. What is the usage in units?

Answer 1

Answer:

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Answer 2

Demand of unit (D) = 2,592

Step-by-step explanation:

Given:

EOQ = 360 units

Order costs = Rs. 5 per order

Carrying costs = Rs. 0.20 per unit

Demand of unit (D) = ?

Computation :

$EOQ= \sqrt{\frac{2DS}{H} }\\\\360=\sqrt{\frac{2(D)(5)}{0.20} }$

Squaring both side:

$129.600={\frac{10(D)}{0.20} }\\\\129.600= 50(D)\\\\D=2,592$

Demand of unit (D) = 2,592

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