Railways NTPC (Technical Ability) Materials Science Question Bank Materials Science

  • question_answer
    If the annual demand of an item becomes half, ordering cost double, holding cost one-fourth and the unit cost twice, then what is the ratio of the new EOQ and the earlier EOQ?

    A) \[\frac{1}{2}\]                          

    B) \[\frac{1}{\sqrt{2}}\]

    C) \[\sqrt{2}\]                                

    D) 2

    Correct Answer: D

    Solution :

    \[EOQ=\sqrt{\frac{2D{{C}_{0}}}{{{C}_{c}}}}\] \[\frac{Q_{2}^{*}}{Q_{1}^{*}}=\sqrt{\frac{{{D}_{2}}}{{{D}_{1}}}\times \frac{{{C}_{02}}}{{{C}_{01}}}\times \frac{{{C}_{c1}}}{{{C}_{c2}}}}=\sqrt{\frac{1}{2}\times \frac{2}{1}\times \frac{4}{1}}=2\]


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