Mechanical Engineering Exam  >  Mechanical Engineering Questions  >   A company has to manufacture 2,00,000 bracke... Start Learning for Free
A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?
Ans. C
  • a)
    0.78
  • b)
    0.68
  • c)
    0.88
  • d)
    0.65
Correct answer is option ''. Can you explain this answer?
Verified Answer
A company has to manufacture 2,00,000 brackets in a year. It orders r...
Annual demand = 2, 00,000 units
Ordering cost = Rs. 40/order
Carrying cost = 20% of unit cost
Unit cost = Rs. 0.2/unit-year
= Rs. 41160
= 0.88%
View all questions of this test
Most Upvoted Answer
A company has to manufacture 2,00,000 brackets in a year. It orders r...
Annual demand = 2, 00,000 units
Ordering cost = Rs. 40/order
Carrying cost = 20% of unit cost
Unit cost = Rs. 0.2/unit-year
= Rs. 41160
= 0.88%
Attention Mechanical Engineering Students!
To make sure you are not studying endlessly, EduRev has designed Mechanical Engineering study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Mechanical Engineering.
Explore Courses for Mechanical Engineering exam

Similar Mechanical Engineering Doubts

Top Courses for Mechanical Engineering

A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer?
Question Description
A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. 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 A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. 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 A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer?.
Solutions for A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering. Download more important topics, notes, lectures and mock test series for Mechanical Engineering Exam by signing up for free.
Here you can find the meaning of A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer?, a detailed solution for A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer? has been provided alongside types of A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A company has to manufacture 2,00,000 brackets in a year. It orders raw materials for the brackets in lots of 50,000 units from a vendor. It costs Rs. 40 to place an order, inventory carrying costs are 20% of the item cost/yr which is Rs. 0.2/unit. Calculate the variation of cost (in %) in their order quantity from optimal?Ans. Ca) 0.78b) 0.68c) 0.88d) 0.65Correct answer is option ''. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
Explore Courses for Mechanical Engineering exam

Top Courses for Mechanical Engineering

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev