Question
Download Solution PDFIf the EOQ is 360 units, order cost is Rs. 5 per order and carrying cost is Rs. 0.20 per unit, what is the usage?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFexplanation:
EOQ = 360
(Co) ordering cost per unit = Rs. 5 per order
(Cc) carrying cost per unit = Rs. 0.20
So,
\(EOQ = \sqrt {\frac{{2R{C_o}}}{{{C_c}}}} \)
\(EOQ = 360 = \sqrt {\frac{{2 \times R \times 5}}{{0.20}}} \;\)
\({\left( {360} \right)^2} = \frac{{2 \times R \times 5}}{{0.20}}\)
\(R = \frac{{{{\left( {360} \right)}^2} \times 0.20}}{{2 \times 5}}\)
∴ R = 2592 Unit
[Demand = 2592 Unit]
Last updated on Jun 23, 2025
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