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Mechanical Engineering · Q210

Industrial Engineering And Production Management

Engineering and GATE · Mechanical Engineering · question 210

Q210

If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by

A.
B.
C.
Answer
D.

Answer: Option C

Solution

Answer: Option C
Solution:
If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by