Calculate Economic Batch size from information given below Annual usage or production 24 000 units S...........

Costing - Phase (I & II) Methods of Costing

Calculate Economic Batch size from information given below:

Annual usage or production = 24,000 units

Set up cost = Rs. 120/- per batch

Carrying cost per unit = 0.36

3000 units

5000 units

4000 units

1000 units

The formula of calculating economic batch quantity is:

√ 2 (x) U (x) S/ C

Where, U = annual usage, S is set up cost per batch and C is carrying cost per unit per annum

In given problem, it will be 4000 units.

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