Material (EOQ) - Doubt ??

Sir you had not provide the annual usage?????

EOq=200

ans is 200

our carrying cost would be 2000 as carrying and ordering cost is always equal at eoq level

so calculation is

half of eoq*20=2000

therefor ans is 200

cheers

ya its 200

Total carrying cost & ordering cost= root2AOC

given Total carrying cost & ordering cost  = 4000

A=?

o=100

c=20

by substituting,

4000=root 2*A*100 *20

4000 * 4000 =4000A

therefore annual consumpton(A) = 4000

EOQ = root 2AO/C

            =root 2*4000*100/20

            =root40000

   EOQ = 200 UNITS

Thanks to all of you

my pleasure bhai

cheers