Question:
The demand of a certain part is 1000 parts/year and its cost is ₹1000/part.
The orders are placed using EOQ. The ordering cost is ₹100/order and the lead time is 5 days.
If the holding cost is ₹20/part/year, the inventory level for placing the orders is ________________ parts (round off to the nearest integer).
The demand of a certain part is 1000 parts/year and its cost is ₹1000/part.
The orders are placed using EOQ. The ordering cost is ₹100/order and the lead time is 5 days.
If the holding cost is ₹20/part/year, the inventory level for placing the orders is ________________ parts (round off to the nearest integer).
Show Hint
Reorder level depends only on consumption rate and lead time—not on EOQ itself.
Updated On: Dec 1, 2025
Show Solution
Verified By Collegedunia
Correct Answer: 13
Solution and Explanation
To find the reorder level, use:
\[ \text{Reorder Level} = \text{Daily Demand} \times \text{Lead Time} \] Annual demand = 1000 parts
Working days = 365 days
Daily demand:
\[ d = \frac{1000}{365} \approx 2.74 \text{ parts/day} \] Lead time = 5 days
\[ \text{Reorder Level} = 2.74 \times 5 = 13.7 \approx 14 \] Thus, an order should be placed when inventory reaches:
\[ \boxed{14} \]
\[ \text{Reorder Level} = \text{Daily Demand} \times \text{Lead Time} \] Annual demand = 1000 parts
Working days = 365 days
Daily demand:
\[ d = \frac{1000}{365} \approx 2.74 \text{ parts/day} \] Lead time = 5 days
\[ \text{Reorder Level} = 2.74 \times 5 = 13.7 \approx 14 \] Thus, an order should be placed when inventory reaches:
\[ \boxed{14} \]
Was this answer helpful?
0
0
Top GATE Engineering Mathematics Questions
- $F(t)$ is a periodic square wave function as shown. It takes only two values, 4 and 0, and stays at each of these values for 1 second before changing. What is the constant term in the Fourier series expansion of $F(t)$?
- Consider a cube of unit edge length and sides parallel to co-ordinate axes, with its centroid at the point (1, 2, 3). The surface integral \[ \int_A \vec{F} \cdot d\vec{A} \] of the vector field \[ \vec{F} = 3x\,\hat{i} + 5y\,\hat{j} + 6z\,\hat{k} \] over the entire surface A of the cube is ________________.
- Consider the definite integral \[ \int_{1}^{2} (4x^2 + 2x + 6)\, dx. \] Let I_e be the exact value. Using Simpson’s rule with 10 equal subintervals, the estimate is I_s.
The percentage error \[ e = 100 \times \frac{(I_e - I_s)}{I_e} \] is ________________. Given \[ \int_{-\infty}^{\infty} e^{-x^2}\, dx = \sqrt{\pi}. \] If $a$ and $b$ are positive integers, the value of
\(\int_{-\infty}^{\infty} e^{-a(x+b)^2}\, dx \text{ is} \)______
- A polynomial \[ \varphi(s) = a_n s^n + a_{n-1} s^{n-1} + \cdots + a_1 s + a_0 \] of degree \(n>3\) with constant real coefficients has triple roots at \( s = -\sigma \). Which one of the following conditions must be satisfied?
View More Questions
Top GATE Solutions of linear and non-linear algebraic equations Questions
- For a dynamical system governed by the equation
\[ \ddot{x}(t) + 2 \zeta \omega_n \dot{x}(t) + \omega_n^2 x(t) = 0, \] the damping ratio is given as \( \zeta = \frac{1}{2\pi} \log_e 2 \). A displacement peak in the positive direction is measured as 4 mm. Neglecting higher powers (\(>1\)) of damping ratio, the displacement at the next peak (positive direction) will be ________________ mm (integer). - Find the positive real root of \( x^3 - x - 3 = 0 \) using Newton-Raphson method. If the starting guess \( x_0 \) is 2, the numerical value of the root after two iterations \( (x_2) \) is \(\underline{\hspace{1cm}}\) (round off to two decimal places).
- In order to numerically solve the ordinary differential equation \(\frac{dy}{dt}=-y\) for t > 0, with an initial condition y(0) = 1, the following scheme is employed
\(\frac{y_{n+1}-y_n}{\Delta t}=\frac{1}{2}(y_{n+1}+y_n).\)
Here, \(\Delta\)t is the time step and \(y_n = y(n\Delta t)\) for n = 0, 1, 2,…. This numerical scheme will yield a solution with non-physical oscillations for \(\Delta t \gt h\). The value of h is
Top GATE Questions
- “I have not yet decided what I will do this evening; I ______ visit a friend.”
- Eject : Insert : : Advance : _______ (By word meaning)
- What are the number of numbers possible divisible by 3 if we choose 4 numbers from the set S = {4,5,7,8,9}
- Let \(A\) and \(B\) be real symmetric matrices of the same size. Which one of the following options is correct?
- Air inside a rigid, thermally-insulated tank undergoes stirring as shown in the figure below. Which one of the following options is correct?
\includegraphics[width=0.5\linewidth]{18.png}
View More Questions