Question

A factory consumes 1,250 units of material X per month. The cost of the material is ₹54 per unit. The cost per order is ₹180 and the material carrying cost is 10% of the material cost. Find (i) economic order quantity and (ii) number of orders to be placed in a year.

A (i) 1,000 units; (ii) 15
B (i) 2,500 units; (ii) 6
C (i) 3,000 units; (ii) 5
D (i) 1,500 units; (ii) 10
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