Question

The following details are available in respect of a firm:

Inventory required per year: 6,000 units

Carrying costs per item for one year: Re 1

Cost of placing each order: Rs. 60

Alternative order sizes (units): 6,000; 3,000; 2,000; 1200; 1,000; 600.

Determine EOQ.The following details are available in respect of a firm:

Inventory required per year: 6,000 units

Carrying costs per item for one year: Re 1

Cost of placing each order: Rs. 60

Alternative order sizes (units): 6,000; 3,000; 2,000; 1200; 1,000; 600.

Determine EOQ.

Answer 1

Answer:

no I don't know if you have to be a good

Answer 2

Answer:

Annual demand is 20,000 units so the company will have to place 16 orders (= annual demand of 20,000 divided by order size of 1,265). Total ordering cost is hence $6,400 ($400 multiplied by 16). Average inventory held is 632.5 (=(0+1,265)/2) which means total annual carrying costs would be $6,325 (i.e. 632.5 × $10).