You are a manufacturer of tennis balls in the Mumbai Suburbs. Recently, you got an order...

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You are a manufacturer of tennis balls in the Mumbai Suburbs. Recently, you got an order to supply 1200 units of the same on a monthly basis. The cost of carrying an inventory of such tennis balls is 1.80 per unit on yearly basis. The production process requires a setup cost on a per run basis of Rs 1000. Compute: a. The EOQ, and define the need of computing the EOQ b. The Optimum number of orders and optimum period of supply You are a manufacturer of tennis balls in the Mumbai Suburbs. Recently, you got an order to supply 1200 units of the same on a monthly basis. The cost of carrying an inventory of such tennis balls is 1.80 per unit on yearly basis. The production process requires a setup cost on a per run basis of Rs 1000. Compute: a. The EOQ, and define the need of computing the EOQ b. The Optimum number of orders and optimum period of supply

Answer rating: 100% (QA)

a EOQ stands for Economic Order Quantity It is the optimal order quantity that minimizes the total i... View the full answer