EOQ

The inventory holding cost of an item is ₹0.50 per unit per month and the ordering cost per order is ₹ 550. A stockist needs to supply 10000 units of the item per year to the custo...

A company uses 3000 units of a part annually. The units are priced as given in the table below. It costs Rs. 150 to place an order. Carrying costs are 40 percent of the purchase pr...

A company orders gears in conditions identical to those considered in the economic order quantity (EOQ) model in inventory control. The annual demand is 8000 gears, the cost per or...

A company orders gears in conditions identical to those considered in the economic order quantity (EOQ) model in inventory control. The annual demand is 8000 gears, the cost per or...

With reference to the Economic Order Quantity (EOQ) model, which one of the options given is correct?

The demand of a certain part is 1000 parts/year and its cost is Rs. 1000/part. The orders are placed based on the economic order quantity (EOQ). The cost of ordering is Rs. 100/ord...

The annual demand of valves per year in a company is 10,000 units. The current order quantity is 400 valves per order. The holding cost is Rs. 24 per valve per year and the orderin...

A local tyre distributor expects to sell approximately 9600 steel belted radial tyres next year. Annual carrying cost is Rs. 16 per tyre and ordering cost is Rs. 75. The economic o...

The annual demand for an item is $$10,000$$ units. The unit cost is Rs. $$100$$ and inventory carrying charges are $$14.4\% $$ of the unit cost per annum. The cost of one procureme...

Annual demand of a product is $$50,000$$ units and the ordering cost is Rs. $$7,000$$ per order. Considering the basic economic order quantity model, the economic order quantity is...

The annual requirement of rivets at a ship manufacturing company is $$2000$$ $$kg.$$ The rivets are supplied in units of 1 kg costing Rs. $$25$$ each. If it costs Rs. $$100$$ to pl...

Annual demand for window frames is $$10000.$$ Each frame costs Rs. $$200$$ and ordering cost is Rs. $$300$$ per order. Inventory holding cost is Rs. $$40$$ per frame per year. The...

Market demand for springs is $$8,00,000$$ per annum. A company purchases these springs in lots and sells them. The cost of making a purchase order is Rs.$$1,200.$$ The cost of stor...

An item can be purchased for Rs.$$100.$$ The ordering cost is Rs.$$200$$ and the inventory carrying cost is $$10\% $$ of the item cost per annum. If the annual demand is 4000 units...

A company places orders for supply of two items $$A$$ and $$B.$$ The order cost for each of the items is Rs.$$300$$ /order. The inventory carrying cost is $$18\% $$ of the unit pri...

In computing Wilson’s economic lot size for an item, by mistake the demand rate estimate used was $$40\% $$ higher than the tree demand rate. Due to this error in the lot size comp...

In inventory planning, extra inventory is unnecessarily carried to the end of the planning period when using one of the following lot size decision policies:

Consider the following data for a product: Demand $$=1000$$ units/year Order cost $$=$$ Rs.$$40$$/order Holding cost $$ = 10\% $$ of the unit cost / unit-year Unit cost $$=$$ Rs.$$...

If the demand for an item is doubled and the ordering cost halved, the economic order quantity

When the annual demand of a product is $$24000$$ units, the $$EOQ$$ (Economic Order Quantity) is $$2000$$ units. If the annual demand is $$48000$$ units the most appropriate $$EOQ$...

In an ideal inventory control system, the economic lot size for a part is $$1000.$$ If the annual demand for the part is doubled, the new economic lot size required will be: