1.

A pharmaceutical company is having annual demand of its medicine 1,60,000 units. For the production of units, company has to bear setting up and order processing cost of RS 1,600. Cost of manufacturing one unit is RS 8000. Cost of carrying is 10% per annum. What’s Economic Batch Quantity (in units)? a) 800 units b) 1600 units c) 160 units d) 80 units

Answer»

Correct option: a) 800 units



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