Derive the Economic Order Quantity EOQ $=2$

$$

Where, D$=$ demand$/$year$,=$ Ordering cost, cost$/$order$,=$ carrying cost$/$unit item$/$time

Q$2$ : Let us assume that ordering cost per order is Rs$.10,$ carrying cost as a percentage of

purchase price is $10\%.$ Purchase price per unit is Rs$.20.$ Calculate EOQ, Total Cost and

optimum number of orders?

Q$3$: The annual demand for an item is $3200$ parts. The unit cost is Rs$.6$ and the inventory

carrying charges are estimated as $25\%$ per annum. If the cost of one procurement is Rs$.150,$

find:

$($i$)$ Economic order quantity

$($ii$)$ Time between two consecutive orders

$($iii$)$ Number of orders per year

$($iv$)$ The optimal cost