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.$$500$$

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 $$EOQ$$?

Questions Asked from Inventory Control (Marks 5)

Number in Brackets after Paper Indicates No. of Questions

GATE ME Subjects

Engineering Mechanics

Strength of Materials

Theory of Machines

Engineering Mathematics

Machine Design

Fluid Mechanics

Turbo Machinery

Heat Transfer

Thermodynamics

Production Engineering

Industrial Engineering

General Aptitude