Railways NTPC (Technical Ability) Engineering Mechanics and Strength of Materials Question Bank Engineering Mechanics

  • question_answer
    Annual demand for a product costing Rs.100 Per piece is Rs.900. Ordering cost per order is Rs.100 and inventory holding cost is Rs.2 per unit per year. The economic size is:

    A) 200                              

    B) 300

    C) 400                              

    D) 500

    Correct Answer: D

    Solution :

    \[D=900\,\,{{C}_{0}}=Rs.\,\,\text{100/order,}\] \[{{C}_{c}}=\text{Rs}\,\text{2/unit}\,\,\text{per}\,\,\text{year,}\] \[EOQ=\sqrt{\frac{2D{{C}_{0}}}{{{C}_{c}}}}\] \[=\sqrt{\frac{2\times 900\times 100}{2}}=300\]


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