Question: Find the Optimum Quantity for the following EOQ model Annual usage 5 0 0 pieces Cost per piece Rs . 1 0 0 Ordering cost

Find the Optimum Quantity for the following EOQ model
Annual usage 500 pieces
Cost per piece Rs.100
Ordering cost Rs.10 per order
Inventory holding cost 20% of Average Inventory

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

The adjusted trial balance for Hercules Company is presented below. Instructions a. Prepare the closing entries. b. Prepare T accounts for the accounts aff ected by the closing entries. Post the...

Q:

3. The firm will receive a 20 percent reduction in the cost of the item (lowered to $4.00 per unit) if the order quantity is at least 2,000 units. Should the firm accept the offer? Explain. Hint:...

Q:

Question 3. The following table shows the monthly demand, percentage of holding cost per unit, ordering cost and annual consumption for the items under consideration for one year. Table 1. Demand per...

Q:

Question 3. The following table shows the monthly demand, percentage of holding cost per unit, ordering cost and annual consumption for the items under consideration for one year. Table 1. Demand per...

Q:

n Tet D XO When comparing a PMI index of 58 percent for February to an index of 53 percent for January, we can conclude that. L. The manufacturing sector grew in January and February, II. The...

Q:

No. 1 (Unit: 14) Note: All questions carry equal marks. Q. 1 In an accounting conference, discussion turned to the possibility of preparing financial statements from few accounts together with...

Q:

No. 1 (Unit: 14) Note: All questions carry equal marks. Q. 1 In an accounting conference, discussion turned to the possibility of preparing financial statements from few accounts together with...

Q:

107 7. Using the data in No. 5, what is the reorder point? Rounded. a. 192 jerseys b. 180 jerseys C. 200 jerseys d. 105 jerseys 8. The annual demand for tennis racquets is 50,000 units, and carrying...

Q:

It is a common practice that suppliers provide an incentive for large order quantities by offering a lower purchase cost when items are ordered in larger quantities. In this question, we consider...

Q:

A company's monthly requirement of an inventory item is 1,800 units. The cost of processing an order is Rs. 5 and the carrying cost per unit is 20 paise. The company supplier agrees to offer the...

Q:

QUESTION 21 Inventory costs include 1. Carrying 2. Ordering 3. Shortage costs 4. all of the above QUESTION 22 The purpose of inventory management is to determine 1. How much to order 2. When to order...

Q:

Eileen takes out a 3/1 ARM with 3/4/5 caps. The initial teaser rate on the mortgage is 2.5% and the mortgage is indexed to 1 year CMT with a margin of 2%. Suppose that at the first reset the 1 year...

Q:

Differentiate between a static-budget variance and a flexible-budget variance

Q:

Which one of the following is defined as an option that can only be exercised at expiration? Turopionssitecotion inthe - money option cutal the - money option Wemencan style eption denvilue opton

Q:

AS OF JANUARY 1,2017 THE CITY COUNCIL APPROVED AND THE MAYOR SIDNED A BUDGET CALLING FOR 11150000 IN PROPERTY TAX AND OTHE REVENUE. 9350000 IN APPROPRIATIONS FOR EXENDDITURE,S AND 1700000 TO BE...