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Industrial Engineering Miscellaneous

Industrial Engineering

  1. Market demand for springs is 8,00,000 per annum. A company purchases these spring in lots and sells them. The cost of making a purchase order is Rs. 1,200. The cost of Storage of springs is Rs. 120 per stored piece per annum. The economic order quantity is
    1. 400
    2. 2,828
    3. 4,000
    4. 8,000
Correct Option: C

D = 8,00,000 units/year
Co = 1200/Order
Ch = 120/unit/ year

Q* = 4000 units



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