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    Material Handling BBA 07183048

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    Junaid Ahmed
    This document is a student assignment submitted by Warda Iqbal to Ms. Fatima Sultana for the subject Material Handling and Inventory Management. It determines the economic order quantity (EOQ) for an annual requirement of 1,890,000 units with an ordering cost of Rs. 300 per unit and holding cost of Rs. 67.32 per unit. The student calculates the EOQ to be 4,104 units and provides a table comparing total costs at different order quantities to show that total cost is minimum at the EOQ level.

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    Material Handling BBA 07183048

    Uploaded by

    Junaid Ahmed
    11 views4 pages
    This document is a student assignment submitted by Warda Iqbal to Ms. Fatima Sultana for the subject Material Handling and Inventory Management. It determines the economic order quantity (EOQ) for an annual requirement of 1,890,000 units with an ordering cost of Rs. 300 per unit and holding cost of Rs. 67.32 per unit. The student calculates the EOQ to be 4,104 units and provides a table comparing total costs at different order quantities to show that total cost is minimum at the EOQ level.

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    This document is a student assignment submitted by Warda Iqbal to Ms. Fatima Sultana for the subject Material Handling and Inventory Management. It determines the economic order quantity (EOQ) for an annual requirement of 1,890,000 units with an ordering cost of Rs. 300 per unit and holding cost of Rs. 67.32 per unit. The student calculates the EOQ to be 4,104 units and provides a table comparing total costs at different order quantities to show that total cost is minimum at the EOQ level.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views4 pages

    Material Handling BBA 07183048

    Uploaded by

    Junaid Ahmed
    This document is a student assignment submitted by Warda Iqbal to Ms. Fatima Sultana for the subject Material Handling and Inventory Management. It determines the economic order quantity (EOQ) for an annual requirement of 1,890,000 units with an ordering cost of Rs. 300 per unit and holding cost of Rs. 67.32 per unit. The student calculates the EOQ to be 4,104 units and provides a table comparing total costs at different order quantities to show that total cost is minimum at the EOQ level.

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    of 4

    ASSIGNMENT 1

    Submitted by:
    Warda Iqbal
    Registration#
    BBA07183048
    Submitted to:
    Ms. Fatima Sultana
    Subject:
    Material Handling and Inventory Management
    Due date
    9-11-2021
    Class:
    BBA 7th
    Question
    Annual requirement = 1890000
    Ordering cost per unit = Rs. 300
    Holding cost per unit = Rs. 67.32
    Determine EOQ and prove at which cost will be minimum at EOQ level?

    Answer
    For EOQ

    EOQ =
    √ 2 xSxD
    H

    EOQ=
    √ 2 x 300 x 1890000
    67.32
    EOQ = 4,104 Units
    For Cost
    Total
    No. Of
    Order Average Ordering
    Units s Inventory Cost Holding Cost Total Cost

    945,000.0 63,617,400.0 63,617,700.0


    1,890,000.00 1.00 0 300.00 0 0

    472,500.0 31,808,700.0 31,809,300.0


    945,000.00 2.00 0 600.00 0 0

    315,000.0 21,205,800.0 21,206,700.0


    630,000.00 3.00 0 900.00 0 0

    236,250.0 15,904,350.0 15,905,550.0


    472,500.00 4.00 0 1,200.00 0 0

    189,000.0 12,723,480.0 12,724,980.0


    378,000.00 5.00 0 1,500.00 0 0

    135,000.0
    4,200.00 450.00 2,100.00 0 141,372.00 276,372.00

    4,190.69 451.00 2,095.34 135,300.0 141,058.54 276,358.54


    0

    135,600.0
    4,181.42 452.00 2,090.71 0 140,746.46 276,346.46

    135,900.0
    4,172.19 453.00 2,086.09 0 140,435.76 276,335.76

    136,200.0
    4,163.00 454.00 2,081.50 0 140,126.43 276,326.43

    136,500.0
    4,153.85 455.00 2,076.92 0 139,818.46 276,318.46

    136,800.0
    4,144.74 456.00 2,072.37 0 139,511.84 276,311.84

    137,100.0
    4,135.67 457.00 2,067.83 0 139,206.56 276,306.56

    137,400.0
    4,126.64 458.00 2,063.32 0 138,902.62 276,302.62

    137,700.0
    4,117.65 459.00 2,058.82 0 138,600.00 276,300.00

    138,000.0
    4,108.70 460.00 2,054.35 0 138,298.70 276,298.70

    138,300.0
    4,099.78 461.00 2,049.89 0 137,998.70 276,298.70

    138,600.0
    4,090.91 462.00 2,045.45 0 137,700.00 276,300.00

    138,900.0
    4,082.07 463.00 2,041.04 0 137,402.59 276,302.59

    139,200.0
    4,073.28 464.00 2,036.64 0 137,106.47 276,306.47

    139,500.0
    4,064.52 465.00 2,032.26 0 136,811.61 276,311.61

    4,055.79 466.00 2,027.90 139,800.0 136,518.03 276,318.03


    0

    140,100.0
    4,047.11 467.00 2,023.55 0 136,225.70 276,325.70

    140,400.0
    4,038.46 468.00 2,019.23 0 135,934.62 276,334.62

    140,700.0
    4,029.85 469.00 2,014.93 0 135,644.78 276,344.78

    141,000.0
    4,021.28 470.00 2,010.64 0 135,356.17 276,356.17

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