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

Machine Design

Strength of Materials

Heat Transfer

Production Engineering

Industrial Engineering

Turbo Machinery

Theory of Machines

Engineering Mathematics

Fluid Mechanics

Thermodynamics

General Aptitude