Question: Example 7 : Annual demand for an item is 3 6 0 0 0 units. The production capacity is 1 0 , 5 0 0

Example 7: Annual demand for an item is 36000 units. The production capacity is 10,500 units per month. Production cost per unit is Rs.12.6. Inventory carrying cost is estimated to be 20% of average inventory. The set up cost for each production run is Rs.225. Determine 1. EOQ 2. No. of set-ups per year 3. Production time per cycle 4. Max. Inventory 5. Min. Inventory 6. Total annual cost 7. Cycle time 8. Inventory period 9. Shortage period

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