Inventory Control · Industrial Engineering · GATE ME

A company orders gears in conditions identical to those considered in the economic order quantity (EOQ) model in inventory control. The annual demand is 8000 gears, the cost per order is 300 rupees, and the holding cost is 12 rupees per month per gear. The company uses an order size that is 25% more than the optimal order quantity determined by the EOQ model. The percentage change in the total cost of ordering and holding inventory from that associated with the optimal order quantity is

GATE ME 2024

A food processing company uses $$25,000$$ $$kg$$ of corn flour every year. The quantity-discount price of corn flour is provided in the table below:

The order processing charges are Rs. $$500$$/order. The handling plus carry-over charge on an annual basis is $$20\% $$ of the purchase price of the corn flour per $$kg$$. The optimal order quantity (in $$kg$$) is __________.

GATE ME 2016 Set 2

The annual demand for an item is $$10,000$$ units. The unit cost is Rs. $$100$$ and inventory carrying charges are $$14.4\% $$ of the unit cost per annum. The cost of one procurement is Rs. $$2000.$$ The time between two consecutive orders to meet the above demand is _______ month(s).

GATE ME 2016 Set 1

The annual requirement of rivets at a ship manufacturing company is $$2000$$ $$kg.$$ The rivets are supplied in units of 1 kg costing Rs. $$25$$ each. If it costs Rs. $$100$$ to place an order and the annual cost of carrying one unit is $$9\% $$ of its purchase cost, the cycle length of the order (in days) will be _______________

GATE ME 2015 Set 3

Consider the following data with reference to elementary deterministic economic order quantity model

The total number of economic orders per year to meet the annual demand is _______________.

GATE ME 2014 Set 2

A manufacturer can produce $$12000$$ bearings per day. The manufacturer received an order of $$8000$$ bearings per day from a customer. The cost of holding a bearing in stock is Rs. $$0.20$$ per month. Setup cost per production run in Rs.$$500.$$ Assuming $$300$$ working days in a year, the frequency of production run should be

GATE ME 2014 Set 3

Annual demand for window frames is $$10000.$$ Each frame costs Rs. $$200$$ and ordering cost is Rs. $$300$$ per order. Inventory holding cost is Rs. $$40$$ per frame per year. The supplier is willing to offer $$2\% $$ discount if the order quantity is $$1000$$ or more, and $$4\% $$ if order quantity is $$2000$$ or more. If the total cost is to be minimized, the retailer should

GATE ME 2010

A company uses $$2555$$ units of an item annually. Delivery lead time is $$8$$ days. The recorder point (in number of units) to achieve optimum inventory is

GATE ME 2009

In a machine shop, pins of $$15mm$$ diameter are produced at a rate of $$1000$$ per month and the same is consumed at a rate of $$500$$ per month. The production and consumption continue simultaneously till the maximum inventory is reached. Then inventory is allowed to reduced to zero due to consumption. The lot size of production is $$1000.$$ If backlog is not allowed, the maximum inventory levels is

GATE ME 2007

The maximum level of inventory of item is $$100$$ and it is achieved with infinite replenishment rate. The inventory becomes zero over one and half month due to consumption at a uniform rate. This cycle continuous throughout the year. Ordering cost is Rs.$$100$$ per order and inventory carrying cost is Rs. $$10$$ per item per month. Annual cost (in Rs. ) of the plan, neglecting material cost, is

GATE ME 2007

A stockist wishes to optimize the number of perishable items he needs to stock in any month in his store. The demand distribution for this perishable item is:

The stockist pays Rs.$$70$$ for each item and he sells each at Rs.$$90.$$ if the stock is left unsold in any month, he can sell the item at Rs.$$50$$ each. There is no penalty for unfulfilled demand. To maximize the expected profit, the optimal stock level is:

GATE ME 2006

Consider the following data for an item.
Annual demand: $$2500$$ units per year Ordering cost: Rs.100 per order Inventory holding rate: $$25\% $$ of unit price. The optimum order quantity (in units) is:

Price quoted by a supplier

The optimum order quantity (in units) is

GATE ME 2006

The distribution of lead-time demand fro an item is as follows:

The reorder level is $$1.25$$ times the expected value of the lead-time demand. The service level is

GATE ME 2005

There are two products P and Q with the following characteristics

The economic order quantity (EOQ) of products P and Q will be in the ratio.

GATE ME 2004

A company has an annual demand of $$1000$$ units, ordering cost of Rs.$$100$$/order and carrying cost of Rs.$$100$$/unit –year. If the stock-out costs are estimated to be nearly Rs.$$400$$ each time the company runs out-of-stock, the safety stock justified by the carrying cost will be

GATE ME 2004

Market demand for springs is $$8,00,000$$ per annum. A company purchases these springs in lots and sells them. The cost of making a purchase order is Rs.$$1,200.$$ The cost of storage of springs is Rs.$$120$$ per stored piece per annum. The economic order quantity is

GATE ME 2003

In computing Wilson’s economic lot size for an item, by mistake the demand rate estimate used was $$40\% $$ higher than the tree demand rate. Due to this error in the lot size computation, the total cost of setups plus inventory holding per unit time, would rise above the true optimum by approximately

GATE ME 1999

When the annual demand of a product is $$24000$$ units, the $$EOQ$$ (Economic Order Quantity) is $$2000$$ units. If the annual demand is $$48000$$ units the most appropriate $$EOQ$$ will be

GATE ME 1991

In an ideal inventory control system, the economic lot size for a part is $$1000.$$ If the annual demand for the part is doubled, the new economic lot size required will be:

GATE ME 1989

Marks 5

A company is offered the following price breaks for order quantity

Order cost is Rs.$$60$$ per order while the holding cost is $$10\% $$ of the purchase price. Determine the economic order quantity $$(EOQ)$$ if the annual requirement is $$1000$$ units.

GATE ME 2001

A company places orders for supply of two items $$A$$ and $$B.$$ The order cost for each of the items is Rs.$$300$$ /order. The inventory carrying cost is $$18\% $$ of the unit price per year per unit. The unit prices of the items are Rs.$$40$$ and Rs.$$50$$ respectively. The annual demands are $$10,000$$ and $$20,000$$ respectively.

(a) Find the economic order quantities and the minimum total cost
(b) A supplier is willing to give a $$1\% $$ discount on price, if both the items are ordered from him and if the order quantities for each item are $$1000$$ units or more. Is it profitable to avail the discount?

GATE ME 2000

Determine the number of production runs and also the total incremental cost in a factory for the data given below:

GATE ME 1997

Consider the following data for a product:
Demand $$=1000$$ units/year
Order cost $$=$$ Rs.$$40$$/order
Holding cost $$ = 10\% $$ of the unit cost / unit-year
Unit cost $$=$$ Rs.$$500$$

(a) What is the economic order quantity?
(b) Under the $$EOQ$$ what is the number of annual orders?
(c) With a policy of ordering every month what would be the total annual cost as a percentage of the cost at $$EOQ$$?

GATE ME 1995