1
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: GATE ME 1997 Industrial Engineering - Inventory Control Question 7 English
2
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 $$EOQ$$?

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