Question

if the annual demand is equal to 500 units the ordering cost is equal to 40 and carrying cost equal to rupees 4 per unit the EOQ is ​

Answer 1

Answer:

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Explanation:

Answer 2

If the annual requirement is 500 units the order cost is 40 and the shipping cost is 4 rupees per unit EOQ says:

Economic Order Quantity (EOQ):

• The value of economic order is the size of the order that reduces the total annual cost of inventory management.

• Order costs under considered warranty conditions and known annual requirements.

• Economic order quantity (EOQ) is also called the economic lottery size formula.

• Annual requirement = 500 units.

• Order costs = 40.

• Cost equivalent to rupee = 4 per unit.

• EOQ = Annual Need = 500 × 4 = 2000 units.