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An item is used at a uniform rate of 50,000 units per year. No shortage is allowed and delivery is at an infinite rate. The ordering, receiving and hauling cost is Rs. 13 per order, while inspection cost is Rs. 12 per order. Interest costs Rs. 0.056 and deterioration and obsolescence cost Rs. 0.004 respectively per year for each item actually held in inventory plus Rs. 0.02 per year per unit based on the maximum number of units in inventory. Calculate the EOQ. If lead time is 20 days

Author

aditya312singh2002

Language

EN