Pink & Blue Stores sells 1000 insulated water bottles annually. Demand

1.	Pink & Blue Stores sells 1000 insulated water bottles annually. Demand for the product is uniform. Purchase Cost per bottle is Rs.50. Holding cost per annum is 10% of purchase cost. Ordering cost is Rs. 100 per order. Calculate the Economic Ordering Quantity for bottles?
Answer» Economic Ordering Quantity = √(2PD/C) Thus as : annual demand (D) = 1000 bottles. Order cost (P) = Rs. 100 Annual carrying cost of 1 unit (C/i) = 10% X 50= Rs.5 EOQ = √(2 x 1000 x 100/5 = 200 units.

Pink & Blue Stores sells 1000 insulated water bottles annually. Demand for the product is uniform. Purchase Cost per bottle is Rs.50. Holding cost per annum is 10% of purchase cost. Ordering cost is Rs. 100 per order. Calculate the Economic Ordering Quantity for bottles?

Answer»

Economic Ordering Quantity = √(2PD/C)

Thus as : annual demand (D) = 1000 bottles.

Order cost (P) = Rs. 100

Annual carrying cost of 1 unit (C/i) = 10% X 50= Rs.5

EOQ = √(2 x 1000 x 100/5

= 200 units.

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Pink &amp; Blue Stores sells 1000 insulated water bottles annually. Demand for the product is uniform. Purchase Cost per bottle is Rs.50. Holding cost per annum is 10% of purchase cost. Ordering cost is Rs. 100 per order. Calculate the Economic Ordering Quantity for bottles?

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Pink & Blue Stores sells 1000 insulated water bottles annually. Demand for the product is uniform. Purchase Cost per bottle is Rs.50. Holding cost per annum is 10% of purchase cost. Ordering cost is Rs. 100 per order. Calculate the Economic Ordering Quantity for bottles?