18 February 2009
IF IN A PARTICULAR QS- FOR EG- AN ENTERPRISE MANUFACTURES A SPECIAL PRODUCT "ZED" THE FOLOWING PARTICULARS HAVE BEEN GIVEN MONTHLY DEMAND OF ZED -1000 UNITS NORMAL USAGE 50000 UNITS PER WEEK
SO IN ORDER TO FIND OUT ANNUAL CONSUMPTION FOR CALCULATING EOQ WHAT WILL WE USE WHETHER MONTHLY DEMAND OR NORMAL USAGE ? THIS IS A GREAT CONFUSION AS IN THE STUDY MATERIAL-NORMAL USAGE HAS BEEN TAKEN WHILE IN THE SCANNER- MONTHLY DEMAND HAS BEEN CONSIDERED
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