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Industrial Engineering Miscellaneous

Industrial Engineering

  1. The net requirements of an item over 5 consecutive weeks are 50-0-15-20-20. The inventory carrying cost and ordering cost are Rs. 1 per item per week and Rs. 100 per order respectively. Starting inventory is zero. Use "Least Unit Cost Technique" for developing the plan. The cost of the plan (in Rs.) is
    1. 200
    2. 250
    3. 225
    4. 260
Correct Option: B

Ch = 1 per unit per week
Co = 100/order



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