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    Question

    Using the following data, calculate the Economic Order Quantity (EOQ):

    Monthly consumption: 4000 kg

    Cost per kg of raw materials: ₹2

    Cost per order: ₹60

    Storage cost: 15% of the average inventory

    Which of the following is EOQ?

    A 4,129 kg Correct Answer Incorrect Answer
    B 4,228 kg Correct Answer Incorrect Answer
    C 4382 kg Correct Answer Incorrect Answer
    D 4495 kg Correct Answer Incorrect Answer
    E 5287 kg Correct Answer Incorrect Answer

    Solution

    Annual Demand (D) = 4000*12 = 48000 Kg  S = 60 H = 2*15% = 0.30

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