Question

The order cost per order of an inventory is
Rs. 400 with an annual carrying cost of Rs.
10 per unit. The Economic Order Quantity
(EOQ) for an annual demand of 2000 units
is​

Answer 1

Given:

The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit.

To find:

The Economic Order Quantity (EOQ) for an annual demand of 2000 units

Solution:

​To solve the above-given problem we will use the following formula:  

$\boxed{\bold{Economic\:Order\:Quantity(EOQ) = \sqrt{ \frac{2 \times D\times S}{H}} }}}$  

Where:  

D = Annual demand per unit  

S = ordering cost per purchase order  

H = Annual inventory carrying cost per unit  

Here we are given,

D = 2000 units

S = Rs. 400

H = Rs. 10

Now, on substituting the given values in the formula of EOQ, we get

$EOQ = \sqrt{ \frac{2 \times D\times S}{H}} = \sqrt{ \frac{2 \times 2000\times 400}{10} } = \sqrt{ 2 \times 200\times 400 } = \bold{400}$

 

 Thus, the Economic Order Quantity (EOQ) for an annual demand of 2000 units is​ → 400.

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Also View:

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Answer 2

Answer:

Step-by-step explanation:

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