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?

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

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 $$EOQ$$?