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1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one item in stock for one year.
Calculate:
(a) The optimum order quantity
(b) The number of orders to be placed annually and
(c) The overall costs.
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Step 1 : It is observed that cost of transportation is to Rs. 144. Step 2: Testing the Optimality : After obtaining the initial basic feasible solution the next step is to test
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