GATE Mechanical Engineering (ME) 2020 Shift 2 Solved Paper

1. MRP system, with very high inventory holding cost and the setup cost zero is base stocklevel system. A base stock policy is appropriate when the cost of placing orders is zero orNegligible.
2. Lot for Lot: There is never any inventory thus holding cost is zero
3. Economic order quantity (EOQ) system and fixed period quantity, for 2 periods both havesome ordering cost.