Use 1,000 units a year, order cost Rs 20, carrying Rs 4 a unit. Ordering plus carrying cost at EOQ?
ARs 400
BRs 800
CRs 100
DRs 200
Answer & Solution
Correct answer: A. Rs 400
At EOQ of 100 units there are 10 orders costing Rs 200 and average stock 50 costing Rs 200, so the total is Rs 400.
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