Class XII Entrepreneurship | Business Arithmetic Assignment| Economic Order Quantity (EOQ), Reorder Point & Number of Orders
Prepared by: Shallu Sood
Question 1
A garment store expects an annual demand of 24,000 shirts. Ordering cost is ₹600 per order. Holding cost is ₹24 per shirt per year. Average daily demand is 80 shirts and lead time is 10 days. Safety stock is 200 shirts.
Calculate:
(a) Economic Order Quantity (EOQ)
(b) Reorder Point (ROP)
(c) Number of Orders to be placed in a year
Question 2
A stationery shop expects annual demand of 36,000 notebooks. Ordering cost is ₹450 per order. Holding cost is ₹18 per notebook per year. Average daily demand is 120 notebooks and lead time is 8 days. Safety stock is 150 notebooks.
Calculate:
(a) Economic Order Quantity (EOQ)
(b) Reorder Point (ROP)
(c) Number of Orders to be placed in a year
Question 3
A grocery wholesaler expects annual demand of 48,000 packets. Ordering cost is ₹800 per order. Holding cost is ₹32 per packet per year. Average daily demand is 160 packets and lead time is 12 days. Safety stock is 300 packets.
Calculate:
(a) Economic Order Quantity (EOQ)
(b) Reorder Point (ROP)
(c) Number of Orders to be placed in a year
Question 4
A mobile accessories dealer expects annual demand of 18,000 chargers. Ordering cost is ₹500 per order. Holding cost is ₹20 per charger per year. Average daily demand is 60 chargers and lead time is 15 days. Safety stock is 180 chargers.
Calculate:
(a) Economic Order Quantity (EOQ)
(b) Reorder Point (ROP)
(c) Number of Orders to be placed in a year
Question 5
A book shop expects annual demand of 30,000 pens. Purchase price is ₹10 per pen. Holding cost is 20% of purchase price per year. Ordering cost is ₹500 per order. Average daily demand is 100 pens and lead time is 7 days. Safety stock is 100 pens.
Calculate:
(a) Economic Order Quantity (EOQ)
(b) Reorder Point (ROP)
(c) Number of Orders to be placed in a year
