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 order is 300 rupees, and the holding cost is 12 rupees per month per gear. The company uses an order size that is 25% more than the optimal order quantity determined by the EOQ model. The percentage change in the total cost of ordering and holding inventory from that associated with the optimal order quantity is

GATE 2024 Mechanical Engineering Q38 — Mechanical Engineering

GATE 2024Set MasterQ38MCQanswer pendingexplanation soonmedium

Mechanical Engineering · Inventory Control - EOQ

Concept intelligence

Drill mode: operations research · 2/34

Official answer key is not available for this question yet.

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EOQInventory ManagementOperations Research