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The demand rate for a particular item is 12000 units/year. The ordering cost is Rs. 100 per order and the holding cost is Rs. 0.80 per item per month.

Question

The demand rate for a particular item is 12000 units/year. The ordering cost is Rs. 100 per order and the holding cost is Rs. 0.80 per item per month. If no shortages are allowed and the replacement is instantaneous, then the number of orders per year is

12

36

48

24

Solution

Correct option is D

To determine the number of orders per year, we can use the Economic Order Quantity (EOQ) formula:

So, the number of orders per year is (d) 24.

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The demand rate for a particular item is 12000 units/year. The ordering cost is Rs. 100 per order and the holding cost is Rs. 0.80 per item per month. If no shortages are allowed and the replacement is instantaneous, then the number of orders per year is

12

36

48

24

Correct option is D

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Access ‘RRB JE Mechanical Engineering’ Mock Tests with

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