Determining Optimum Batch SizeA distributor sells industrial tools. He has a sales estimate of ₹20 crores for the upcoming year. Each tool sells for ₹10,000. Assume that the demand remains constant throughout the year.The set-up cost per order is ₹10,000 and the inventory holding cost per tool is 10% of its selling price.What is the optimum no.of batches requiredto meet the annual demand? (You should round up your answer to avoid a shortfall.)10162432

Which of the following will be annual optimum cost of a product if thenumber of annual orders without any shortage is 25 and the total cpst of onecycle is 10,000? Rs.400 Rs.10025 Rs.9975 Rs.250000

Economic Order QuantityIn continuation with the previous question, how many units should the distributor order in a batch? (You should round up your answer to avoid any shortfall.)6480625431

Feedback:Think about the formula to calculate the optimum no of batches and try again.

If monthly demand is 1,000 units, the ordering cost is $20 per order, and the holding cost is $1.50 per unit per year, which of the following is the optimal order quantity using EOQ model?

Manico Company produces three products-X, Y, & Z-with the following characteristics: XYZSelling price per unit$21.00$17.00$16.00Variable cost per unit12.6012.756.40Contribution margin per unit$ 8.40$4.25$9.60 === ======= ====== ====Machine hours per unit536The company has only 2,000 machine hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin? Question 19Answera.Orders for Y first, X second, and Z thirdb.Orders for X first, Z second, and Y thirdc.Orders for Z first, X second, and Y thirdd.Orders for Z first and no orders for X or Y