MGT205 Operations Management

Operations ManagementTU Board 2024

The annual demand of a product is 10000 units. Each unit costs Rs.100 if orders placed in quantities below 200 units but for orders of 200 or above the price is Rs. 95. The annual inventory holding…

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The annual demand of a product is 10000 units. Each unit costs Rs.100 if orders placed in quantities below 200 units but for orders of 200 or above the price is Rs. 95. The annual inventory holding costs is 10 percent of the value of the item and the ordering cost is Rs. 5 per order. Find the economic lot size.

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