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In an industry, two bin system is used to control inventory for a particular component. The first bin hold 1200 units and the second bin holds 800 units. When first bin gets empty second bin is consumed during the lead time. The annual usage of the component is 40,000 units. The cost to place an order is around Rs. 50, the annual holding cost per unit is Rs. 4. The total variable cost for the two-bin approach is __________
  • a)
    4065
  • b)
    4068
Correct answer is between ' 4065, 4068'. Can you explain this answer?
Verified Answer
In an industry, two bin system is used to control inventory for a par...
In two bin system order is placed after consuming 1st bin So, ordering quantity will be 1200 units
= Rs. 4066.67
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Most Upvoted Answer
In an industry, two bin system is used to control inventory for a par...
In two bin system order is placed after consuming 1st bin So, ordering quantity will be 1200 units
= Rs. 4066.67
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In an industry, two bin system is used to control inventory for a particular component. The first bin hold 1200 units and the second bin holds 800 units. When first bin gets empty second bin is consumed during the lead time. The annual usage of the component is 40,000 units. The cost to place an order is around Rs. 50, the annual holding cost per unit is Rs. 4. The total variable cost for the two-bin approach is __________a) 4065b) 4068Correct answer is between ' 4065, 4068'. Can you explain this answer?
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In an industry, two bin system is used to control inventory for a particular component. The first bin hold 1200 units and the second bin holds 800 units. When first bin gets empty second bin is consumed during the lead time. The annual usage of the component is 40,000 units. The cost to place an order is around Rs. 50, the annual holding cost per unit is Rs. 4. The total variable cost for the two-bin approach is __________a) 4065b) 4068Correct answer is between ' 4065, 4068'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about In an industry, two bin system is used to control inventory for a particular component. The first bin hold 1200 units and the second bin holds 800 units. When first bin gets empty second bin is consumed during the lead time. The annual usage of the component is 40,000 units. The cost to place an order is around Rs. 50, the annual holding cost per unit is Rs. 4. The total variable cost for the two-bin approach is __________a) 4065b) 4068Correct answer is between ' 4065, 4068'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In an industry, two bin system is used to control inventory for a particular component. The first bin hold 1200 units and the second bin holds 800 units. When first bin gets empty second bin is consumed during the lead time. The annual usage of the component is 40,000 units. The cost to place an order is around Rs. 50, the annual holding cost per unit is Rs. 4. The total variable cost for the two-bin approach is __________a) 4065b) 4068Correct answer is between ' 4065, 4068'. Can you explain this answer?.
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