1
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