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Find the economic order quantity for a product of which the price breaks are as follows
The monthly demand for the product is 200 units. The cost of holding is 25% of the unit cost and the ordering cost is Rs. 20/order.
  • a)
    300
  • b)
    300
Correct answer is between ' 300, 300'. Can you explain this answer?
Verified Answer
Find the economic order quantity for a product of which the price bre...
[Annual demand = 12 × 200 = 2400] EOQ = 234.2
(Not falling in the range)
= Rs. 17222.5
(Falling under range)
= Rs. 19,638.17
Minimum cost is at 300 Quantity
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Most Upvoted Answer
Find the economic order quantity for a product of which the price bre...
[Annual demand = 12 × 200 = 2400] EOQ = 234.2
(Not falling in the range)
= Rs. 17222.5
(Falling under range)
= Rs. 19,638.17
Minimum cost is at 300 Quantity
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