UGC NET COMMERCE June 2019 Q53

53A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs.3 per unit, the cost per purchase order is Rs.300 and the inventory carrying cost is 20% per year. What is the EOQ?

Option : B
Explanation :
Where, A = annual consumption
B = ordinary cost per order
CS = carrying cost per unit per annum

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