Question: 4. (a) Determine EOQ from the following data: (b) Now, if the annual requirement becomes as large as Rs 200,000 (i.e. 4 times the demand),

(a) Determine EOQ from the following data:

Ordering cost Carrying cost Unit cost = Rs 200 per order 20%

(b) Now, if the annual requirement becomes as large as Rs 200,000 (i.e. 4 times the demand), would the EOQ become four times as large as obtained in (a)? Why?

Ordering cost Carrying cost Unit cost = Rs 200 per order 20% of the unit cost per year = Rs 25 Annual requirement = Rs 50,000

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