Question

The demand of a commodity is 1000 units per day. Every time an order is placed, a fixed cost of Rs.400 is occured. Holding cost is Rs. 0.8 per unit per day. The optimum scheduling period between two order is (Take EOQ model)

• A. 8 days
• B. 10 days
• C. None of these
• D. 12 days

Answer 1

The correct option is C None of these

$C_0=Rs.400;D=1000$

$C_h=Rs.0.8$

$\text{EOQ,}$

$q_0=\sqrt{\frac{2D{C}_0}{C_h}}=\sqrt{\frac{2\times 1000\times 400}{0.8}}=1000\text{units}$

$\text{Length of cycle,}{t}_0=\frac{1000}{1000}=1\text{day}$