Podcast
Questions and Answers
What is the Economic Order Quantity (EOQ) calculated for the given inventory system?
What is the Economic Order Quantity (EOQ) calculated for the given inventory system?
- 2,400 units (correct)
- 2,000 units
- 1,800 units
- 3,000 units
How many orders are made per year based on the annual consumption and EOQ?
How many orders are made per year based on the annual consumption and EOQ?
- 15 orders
- 20 orders (correct)
- 30 orders
- 24 orders
What is the total ordering cost for the year?
What is the total ordering cost for the year?
- ₹7,200
- ₹3,600 (correct)
- ₹5,400
- ₹1,800
What is the total carrying cost for the inventory?
What is the total carrying cost for the inventory?
What frequency of orders does the inventory system have in a year?
What frequency of orders does the inventory system have in a year?
What is the average inventory based on the EOQ calculated?
What is the average inventory based on the EOQ calculated?
What is the total cost of both carrying and ordering for the year?
What is the total cost of both carrying and ordering for the year?
If the ordering cost per order was increased to ₹300, how would this affect the total ordering cost with the current number of orders?
If the ordering cost per order was increased to ₹300, how would this affect the total ordering cost with the current number of orders?
Flashcards
EOQ (Economic Order Quantity)
EOQ (Economic Order Quantity)
The optimal quantity of inventory to order to minimize total inventory costs.
Annual Consumption (C)
Annual Consumption (C)
The total number of units consumed by a business in a year.
Ordering Cost (O)
Ordering Cost (O)
The cost associated with placing an order for inventory.
Carrying Cost (I)
Carrying Cost (I)
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EOQ Formula
EOQ Formula
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Number of Orders per Year
Number of Orders per Year
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Total Ordering Cost
Total Ordering Cost
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Total Carrying Cost
Total Carrying Cost
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