The material demanded is 10,000 units per year; the cost price of material is Tk.1 per unit, the cost of replenishing the stock of material per order regardless of the size Q of the order is Tk.25; and the cost of storing the material is 12.5% per year on the taka value of average quantity on hand. 

Find the total cost function, economic order quantity and the total cost corresponding to that.

Answer rating: 100% (QA)

To find the total cost function economic order quantity EOQ and the total cost corresponding to that well follow these steps Step 1 Total Cost Functio... View the full answer