MTH601 Quiz Saima Kanwal by One Step to Success

MTH601 Assignment #01 2023 · Section Incharge: Saima Kanwal · Last Date: 29-11-2023 · For Paid Ms word file: wa.me/

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Q01. If the production of an item is instantaneous with storage cost of Rs.5 per item per month. Other clerical and administrative costs associated to it are of Rs.30 per cycle. Find the best time for replacement provided that its demand is Rs.250 units of items per month.

Solution:

.250 Cos .30 Cos .5 Demand D Rs units per Month Ordering t C Rs per cycle C Storage Holding t Rs per item month Time

2*30*250

1500 3000 54.7722

0.22 For finding time we have to calculate Q EOQ C D EOQ Q C

Q units

Now for finding t we use Q t D

Q02. Demand for an item in a company is 5,000 units per year and company can produce at a rate of 1500 units per month. Cost of ordering is Rs 800 per setup and holding cost is 20 units per year, the shortage cost is 1000 per unit per year If optimum manufacturing quantity is 1400 then find the following

1. Time Between orders
2. Number of orders per year

Solution:

5000 Pr 1500 cos .800 cos cos 1000 1400 Demand D units year oduction rate R units month Ordering t C Rs Holding t C units year Shortage t C units year Optimum manufacturing Quantity Q

1400 0.28 5000

5000 3.5714 1400

0.28. 4. Time between orders Q t D

Number of orders Per year D N Q

Time between ordersis Number of orders per year is approximately