Question:-
Annual demand for a product costing Rs. 100 per piece is Rs. 900. Ordering cost per order is Rs. 100 and inventory holding cost is Rs. 2 per unit per year. The economic lot size is:
Option (A)
200
Option (B)
300
Option(C)
400
Option(D)
500
Correct Option:
(B)
Question Solution:
A = Annual consumption in rupees
C0 = cost of placing an order
I = Inventory carrying cost per unit per year


question-answer-faq-5185