Question: Calculate EOQ Annual Demand = 5,000 units Unit price = `Rs 20.00 Order cost = ` Rs16.00 Storage rate = 2% per annum on unit

Calculate EOQ

  • Annual Demand = 5,000 units
  • Unit price = `Rs 20.00
  • Order cost = ` Rs16.00
  • Storage rate = 2% per annum on unit price
  • Interest rate = 12% per annum on unit price
  • Obsolescence rate = 6% per annum on unit price

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To calculate the Economic Order Quantity EOQ we can use the Wilson EOQ formula EOQ sqrt2DSH Where D ... View full answer

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