Question

    Using the following data, calculate the Economic Order

    Quantity (EOQ) for the consumption of materials: Annual consumption: 10,000 kg Cost per order: ₹50 Cost per kg of raw materials: ₹2 Storage cost: 8% of the average inventory Which of the following is EOQ?
    A 2,600 kg Correct Answer Incorrect Answer
    B 2,510 kg Correct Answer Incorrect Answer
    C 2,500 kg Correct Answer Incorrect Answer
    D 2,700 kg Correct Answer Incorrect Answer
    E 2,800 kg Correct Answer Incorrect Answer

    Solution

      Hence the EOQ will be 2500 kg

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