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The annual requirement of rivets at a ship manufacturing company is 2000 unit. The rivets are supplied in units of 1 kg costing Rs. 25 each. The costs Rs. 100 to place an order and the annual cost of carrying one unit is 9% of its purchase cost, the cycle length of the order (in days) will be ______.
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- 76.9457 days
- 75.9457 days
- 73.9457 days
- 74.9457 days
Correct Option: A
D = 2000 unit
C = Rs 25
CO = Rs 100
| Ch = | × 25 = 2.25 | 100 |
= 421.637
No of orders per year
| N = | Q* |
| = | 421.637 |
⇒ 4.7434
Cycle length of order
| ⇒ | N |
| ⇒ | ⇒ 76.9457 days | 4.474 |
