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Average demand for a particular item is 1,200 units per year It cos

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Average demand for a particular item is 1,200 units per
year. It costs $100 to place an order for this item, and it
costs $24 to hold one unit of this item in inventory for one
year. If the fixed-order-interval model is chosen in this
instance, how often (on average) will this item be ordered
Solution
EOQ=Square Root(2AB/C),A=Annual
Demand,B=Ordering Cost,C=Holding Cost =Square
Root(2*1200*100/24) 100 No of order in a Year=1200/100
12

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Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered Solut ...
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