Question: Precision engineering Factory consumes 5 0 , 0 0 0 units of a component per year. The ordering receiving and handling costs are Rs 3

Precision engineering Factory consumes 50,000 units of a component per year. The ordering receiving and handling costs are Rs 3 per order while trucking costs are Rs 12 per order. The carrying cost includes interest cost of Rs 0.064 per unit per year; storage cost of Rs 1000 per year for 50,000 units. Calculate EOQ.

Step by Step Solution

★★★★★

3.37 Rating (147 Votes )

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:

Stphane Zanella took a second careful sip from the glass of the 2002 St Emilion in front of him. He spun the stem of the wine glass slowly, watching the velvet-red liquid swirl, and reflected upon...

Q:

QuantumTM manufactures electronic testing and measurement instruments. Many products are custom-designed with recent orders for function generators, harmonic analyzers, logic analyzers, temperature...

Q:

John Malone, General Manager of Dakota Office Products (DOP) was concerned about the financial results for the calendar year 2000. Despite a sales increase from the prior year, the company had just...

Q:

Precision Engineering Factory Ltd consumes 50,000 units of a component per year. The ordering, receiving and handling cost are Rs 3 per order while the trucking costs are Rs 12 per order. Further...

Q:

Precision Engineering Factory Ltd consumes 50,000 units of a component per year. The ordering, receiving and handling cost are 3 per order while the trucking costs are 12 per order. Further details...

Q:

An engineering company consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs. 3 per order, while the trucking costs are Rs. 12 per order. Further details...

Q:

Hindustan Engineering Factory consumes 7 5 0 0 0 units of a component per year. The ordering, receiving and handling costs are Rs . 6 per order while transportation cost is Rs . 2 4 per order....

Q:

Hindustan Engineering Factory consumes 7 5 0 0 0 units of a component per year. The ordering, receiving and handling costs are Rs . 6 per order while transportation cost is Rs . 2 4 per order....

Q:

Untitled Section Zeus Corporation's EOQ for Material A * is 500 units. This EOQ is based on; Annual demand: 5,000 units and Ordering costs: $12.50. What are Zedlar's Corp.'s total annual ordering...

Q:

Analytical Questions 1. Generally, as a planner, how would you define Six-Sigma? How would you make benefit from utilising Six-Sigma methodlogy? (1.5 Mark) 2. How can Lean Six-Sigma be used to...

Q:

Plot to scale the values of ln K versus 1/T for the reaction 2 CO2 2 CO + O2.

Q:

Compute the rate of return for the following cash flow to within 0.5%. Year Cash Flow 0..............................-$640 1.....................................0...

Q:

Develop the measurement to identify how you have been successful for each strategic action. Specify the measures to track performance against goals. Identify standard reports from your online and...

Q:

2) Show that i) [10 pts.] cosh? x sinh? x = 1 ii) [10 pts.] In(coth? x - csch? x) = o

Q:

In 2001 a new superconductor, the simple intermetallic alloy MGB2 with critical temperature T. = 39 K, was discovered. This was the highest T. for a non-ceramic superconductor and thus attracted much...

Q:

2) Decide if the following statements are true or false. Provide arguments or a couterexample to support your answers: The set of matrices A with det(A)-1 is a subspace in the vector space space...

Q:

Design a distance relay protection of the power system shown in Fig. 1 using a permissive underreaching transfer trip pilot scheme for lines A and B. Label the Line A relay at Substation 1 "21-A1",...

Q:

2) A particular sensor has its transfer function given by following. The input u(t) is the measurand and the sensor output is y(t). Determine the resonance frequency, useful frequency range and...

Q:

What are diversity, inclusion, and equity? Understand how they differ. What is the inclusion framework (understand the 4 quadrants)? What are the barriers to embracing diversity and inclusion? How...

Q:

Miller Heating is a small manufacturer of auxiliary heaters. The units sell for $300 each. In 2017, the company produced 1,000 units and sold 800 units. There was no beginning inventory. Below are...

Q:

What is a qualitative advantage of making rather than buying a component?

Q:

In a performance report, current-period performance is compared with some benchmark. What might be a useful benchmark?

Q:

What are four principles of effective post project reviews?

Q:

The article What Readers Say about Marijuana (Parade, July 31, 1994, p. 16) reported More than 75% of the readers who took part in an informal PARADE telephone poll say marijuana should be as legal...

Q:

Kripke et al. (2002) claim that persons who sleep 8 or more hours per night have a higher mortality risk than persons who sleep 6 or 7 hours. They analyzed data from the 1982 Cancer Prevention Study...