Question

The order cost per order of an irventory 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

Explanation:

swq-ragv-ukm

no bo.obs required

only gi.rls..

17 cm

Answer 2

Economic order quantity (EOQ) is the order quantity of inventory that minimizes the total cost of inventory management. Two most important categories of inventory costs are ordering costs and carrying costs. Ordering costs are costs that are incurred on obtaining additional inventories. They include costs incurred on communicating the order, transportation cost, etc. Carrying costs represent the costs incurred on holding inventory in hand. They include the opportunity cost of money held up in inventories, storage costs, spoilage costs, etc.

If A = Annual Requirement, O = Order Cost and C = Carrying Cost per unit per annum, then EOQ = $$sqrt[2AO}/{C}$$