Question

Pioneer Stores is trying to determine the economic order quantity for a certain

type of machine tool. The firm sells 60,000 numbers of this machine tool
annually at a price of Rs.80 per piece. The purchase price per machine tool to the
firm is, however, Rs.65. The cost of carrying a machine tool is Rs.10 per year
and the cost of placing an order is Rs.80.
(a) What is the total cost associated with placing one, two, five, and ten orders
per year?
(b) What is the economic order quantity? ​

Answer 1

Answer: EOQ = Sqrt (2 * A * O / C) = Sqrt (2 * 60000 * 80 / 10) = 980 Units.

Explanation:

I had solved in my own way i don’t know if it’s correct I think it is because I had did the equation myself and I got it right tell me if I am wrong or right