railway RRB JE (CBT I + CBT II) Mock Test 2024 Industrial Engineering Production Planning and Inventory Control Inventory Control
Identify the equation that is used to find the quantity giving the most economic order.
where 'A' is the total item consumed per year
'P' is the purchase cost per order
'C' is the annual inventory carrying cost per item.
1
\(\sqrt{\frac{AP}{2C}}\)
2
\(\sqrt{\frac{AP}{C}}\)
3
\(\sqrt{\frac{2AC}{P}}\)
4
\(\sqrt{\frac{2AP}{C}}\)