Examveda
Examveda

Annual usage is 6000 units @ Rs 20 per unit Cost of placing an order is Rs 60 and annual carrying cost of one unit is 10% of inventory value EOQ = __________.

A. 600 units

B. 750 units

C. 1200 units

D. 1250 units

Answer: Option A

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Comments ( 2 )

  1. Maryam Sattar
    Maryam Sattar :
    6 months ago

    According to cost accounting there is a proper formula to calculate:
    EOQ =Under root of ( 2*Annual consumption*Ordering cost)/(Unit cost*Carrying cost)
    so put values in formula like: under root of (2*6000*60)/(10*20) =720000/200 = 3600
    so after removing square root from 3600 the answer is 600.

  2. Manoj Kumar
    Manoj Kumar :
    2 years ago

    EOQ = Root OF (2×6000×60/)20×10% = 600 Units

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