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To determine the optimum run size for bearing manufacture, we can use the Economic Order Quantity (EOQ) formula. The EOQ formula is given by: EOQ = √((2 * D * S) / H) Where: D = Annual demand (units) S = Set-up cost per run H = Inventory holding cost per unit per time period Given: Annual demand (D) = 24,000 bearings per annum Set-up cost per run (S) = Rs. 324 Inventory holding cost per bearing per month (H) = 10 paise = 0.10 rupees First, let's convert the holding cost to rupees per year: Holding cost per bearing per year = 0.10 rupees * 12 months = Rs. 1.20 Now, we can plug the values into the EOQ formula: EOQ = √((2 * 24,000 * 324) / 1.20) EOQ = √(15552000 / 1.20) EOQ = √12960000 EOQ ≈ 3,600 bearings (rounded off to the nearest whole number) Therefore, the optimum run size for bearing manufacture would be 3600 bearings. So, the correct option is: 3600.
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