Operations Research and Operations Management · Production Control · 2 marks · Numerical answer
An item uses classical EOQ. Ordering cost per order rises 20% and demand rate also rises 20%. By what percentage does time between orders increase (integer)?
EOQ scales as $\sqrt{DS}$, so $Q_{new}/Q_{old}=\sqrt{1.2\cdot1.2}=1.2$. Time between orders is Q/D, whose ratio is 1.2/1.2 = 1. Thus the percentage increase is **0%**, assuming holding cost stays fixed.
More Production Control questions
GATE 2024 PI Q65– Jobs A,B,C,D,E are ready at t = 0 and take 9,6,4,5,8 days respectively on one machine.…