GATE Mechanical Engineering (ME) 2018 Shift 2 Solved Paper

Question : 34 of 65

Marks: +1, -0

A local tyre distributor expects to sell approximately 9600 steel belted radial tyres next year. Annual carrying cost in Rs. 16 per tyre and ordering cost is Rs. 75. The economic order quantity of the tyres is

64
212
300
1200

Validate

Solution:

\EOQ=√{\;{2 D C_{o}}/{C_{h}}}=√{\;{2 × 9600 × 75}/{16}}=300

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