1. If the annual requirement is 24,000 units for an item ordering cost is Rs. 200 per order and EOQ = 2000 units with price per unit of the item Rs. 20 then the annual carrying cost per unit is

The Economic Order Quantity (EOQ) model is used to minimize the costs of inventory management. The annual carrying cost per unit is not directly given in the problem, but it can be calculated using the EOQ formula:

EOQ = sqrt((2DS)/H)

where: D = Demand rate (annual requirement) S = Setup costs (ordering cost) H = Holding cost (annual carrying cost per unit)

We can rearrange the formula to solve for H:

H = (2DS) / EOQ^2

Substituting the given values:

H = (2 * 24000 units * Rs. 200 per order) / (2000 units)^2 H = Rs. 4800000 / 4000000 H = Rs. 1.2

So, the annual carrying cost per unit is Rs. 1.2.

The Economic Order Quantity (EOQ) model is used to minimize the costs of inventory management. The annual carrying cost per unit is not directly given in the problem, but it can be calculated using the EOQ formula:

EOQ = sqrt((2DS)/H)

where: D = Demand rate (annual requirement) S = Setup costs (ordering cost) H = Holding cost (annual carrying cost per unit)

We can rearrange the formula to solve for H:

H = (2DS) / EOQ^2

Substituting the given values:

H = (2 * 24000 units * Rs. 200 per order) / (2000 units)^2 H = Rs. 4800000 / 4000000 H = Rs. 1.2

So, the annual carrying cost per unit is Rs. 1.2.