Mechanical Engineering Exam > Mechanical Engineering Questions > An item is produced at the rate of 50 items ...
Start Learning for Free
An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.
Assuming that shortages are not permitted.
Correct answer is '200'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
An item is produced at the rate of 50 items per day. The demand occur...
P = 50 items per day
Co = ₹ 100 per setup
D = 25 items per day
Ch = ₹ 0.01 per unit per day
∴ Minimum cost per run = 5 x 40 = ₹200
Free Test
FREE
| Start Free Test |
Community Answer
An item is produced at the rate of 50 items per day. The demand occur...
Given data:
Production rate = 50 items per day
Demand rate = 25 items per day
Setup cost = ₹100 per setup
Holding cost = ₹0.01 per unit per day
Calculating the minimum total cost:
1. Economic Production Quantity (EPQ):
The Economic Production Quantity (EPQ) is the optimal production quantity that minimizes the total cost of production.
EPQ can be calculated using the following formula:
EPQ = √[(2 × Demand × Setup Cost) / Holding Cost]
Given:
Demand = 25 items per day
Setup Cost = ₹100 per setup
Holding Cost = ₹0.01 per unit per day
Substituting the values in the formula:
EPQ = √[(2 × 25 × 100) / 0.01]
EPQ = √[50000 / 0.01]
EPQ = √5000000
EPQ ≈ 223.61
2. Number of Production Runs:
The number of production runs can be calculated by dividing the total demand by the EPQ.
Number of Production Runs = Total Demand / EPQ
Given:
Total Demand = 25 items per day
Substituting the values in the formula:
Number of Production Runs = 25 / 223.61
Number of Production Runs ≈ 0.11
3. Total Cost:
The total cost can be calculated by multiplying the number of production runs by the setup cost and adding the holding cost for the produced items.
Total Cost = (Number of Production Runs × Setup Cost) + (Number of Production Runs × EPQ × Holding Cost)
Given:
Number of Production Runs ≈ 0.11
Setup Cost = ₹100 per setup
EPQ ≈ 223.61
Holding Cost = ₹0.01 per unit per day
Substituting the values in the formula:
Total Cost = (0.11 × 100) + (0.11 × 223.61 × 0.01)
Total Cost = 11 + 24.60
Total Cost = ₹35.60
Conclusion:
The minimum total cost for one run is ₹35.60, not ₹200 as stated in the answer. It appears that there may be an error in the given correct answer.
Production rate = 50 items per day
Demand rate = 25 items per day
Setup cost = ₹100 per setup
Holding cost = ₹0.01 per unit per day
Calculating the minimum total cost:
1. Economic Production Quantity (EPQ):
The Economic Production Quantity (EPQ) is the optimal production quantity that minimizes the total cost of production.
EPQ can be calculated using the following formula:
EPQ = √[(2 × Demand × Setup Cost) / Holding Cost]
Given:
Demand = 25 items per day
Setup Cost = ₹100 per setup
Holding Cost = ₹0.01 per unit per day
Substituting the values in the formula:
EPQ = √[(2 × 25 × 100) / 0.01]
EPQ = √[50000 / 0.01]
EPQ = √5000000
EPQ ≈ 223.61
2. Number of Production Runs:
The number of production runs can be calculated by dividing the total demand by the EPQ.
Number of Production Runs = Total Demand / EPQ
Given:
Total Demand = 25 items per day
Substituting the values in the formula:
Number of Production Runs = 25 / 223.61
Number of Production Runs ≈ 0.11
3. Total Cost:
The total cost can be calculated by multiplying the number of production runs by the setup cost and adding the holding cost for the produced items.
Total Cost = (Number of Production Runs × Setup Cost) + (Number of Production Runs × EPQ × Holding Cost)
Given:
Number of Production Runs ≈ 0.11
Setup Cost = ₹100 per setup
EPQ ≈ 223.61
Holding Cost = ₹0.01 per unit per day
Substituting the values in the formula:
Total Cost = (0.11 × 100) + (0.11 × 223.61 × 0.01)
Total Cost = 11 + 24.60
Total Cost = ₹35.60
Conclusion:
The minimum total cost for one run is ₹35.60, not ₹200 as stated in the answer. It appears that there may be an error in the given correct answer.
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
|
|
Top Courses for Mechanical EngineeringView all
An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer?
Question Description
An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. 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 An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. 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 An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer?.
An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. 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 An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. 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 An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer?.
Solutions for An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. 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 An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer?, a detailed solution for An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer? has been provided alongside types of An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice An item is produced at the rate of 50 items per day. The demand occurs at the rate of 25 items per day. If the setup cost is ₹ 100 per setup and holding cost is ₹ 0.01 per unit per day, minimum total cost for one run (in ₹) is ___________.Assuming that shortages are not permitted.Correct answer is '200'. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
|
|
Explore Courses for Mechanical Engineering exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup