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The annual demand for an item is 4000 units, ordering cost is Rs. 200 per order and inventory holding cost is given as 8 Rs./unit/year. If 4% is offered for a lot of 1200 units then what will be economical ordering quantity. (Assume unit cost of an item is Rs. 40)
  • a)
    1200
  • b)
    1200
  • c)
    8.5 days
  • d)
    9.5 days
  • e)
    9.5 years
Correct answer is between ' 1200, 1200'. Can you explain this answer?
Verified Answer
The annual demand for an item is 4000 units, ordering cost is Rs. 200...
Frequency of production run
Given data,
Production rate = 24,000/day
Consumption rate = 12,000/day
CC = Rs. 0.02/unit/year
Co = Rs. 18/set‐ up
Working days = 300
= 113841.99
Annual demand = (12,000 × 300) = 36 × 105
= 9.48
≃ 9.5 days
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Most Upvoted Answer
The annual demand for an item is 4000 units, ordering cost is Rs. 200...
Frequency of production run
Given data,
Production rate = 24,000/day
Consumption rate = 12,000/day
CC = Rs. 0.02/unit/year
Co = Rs. 18/set‐ up
Working days = 300
= 113841.99
Annual demand = (12,000 × 300) = 36 × 105
= 9.48
≃ 9.5 days
Free Test
Community Answer
The annual demand for an item is 4000 units, ordering cost is Rs. 200...
Frequency of production run
Given data,
Production rate = 24,000/day
Consumption rate = 12,000/day
CC = Rs. 0.02/unit/year
Co = Rs. 18/set‐ up
Working days = 300
= 113841.99
Annual demand = (12,000 × 300) = 36 × 105
= 9.48
≃ 9.5 days
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The annual demand for an item is 4000 units, ordering cost is Rs. 200 per order and inventory holding cost is given as 8 Rs./unit/year. If 4% is offered for a lot of 1200 units then what will be economical ordering quantity. (Assume unit cost of an item is Rs. 40)a) 1200b) 1200c) 8.5 daysd) 9.5 dayse) 9.5 yearsCorrect answer is between ' 1200, 1200'. Can you explain this answer? for Mechanical Engineering 2025 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about The annual demand for an item is 4000 units, ordering cost is Rs. 200 per order and inventory holding cost is given as 8 Rs./unit/year. If 4% is offered for a lot of 1200 units then what will be economical ordering quantity. (Assume unit cost of an item is Rs. 40)a) 1200b) 1200c) 8.5 daysd) 9.5 dayse) 9.5 yearsCorrect answer is between ' 1200, 1200'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The annual demand for an item is 4000 units, ordering cost is Rs. 200 per order and inventory holding cost is given as 8 Rs./unit/year. If 4% is offered for a lot of 1200 units then what will be economical ordering quantity. (Assume unit cost of an item is Rs. 40)a) 1200b) 1200c) 8.5 daysd) 9.5 dayse) 9.5 yearsCorrect answer is between ' 1200, 1200'. Can you explain this answer?.
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