1
GATE ME 2001
Subjective
+5
-0
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.

2
GATE ME 2000
Subjective
+5
-0
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?

3
GATE ME 1997
Subjective
+5
-0
Determine the number of production runs and also the total incremental cost in a factory for the data given below:
4
GATE ME 1995
Subjective
+5
-0
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 Subjects
EXAM MAP
Medical
NEET