00:01
So, here it is given that for production department requires the mass m is equal to 3500 of kg for that rupees is given that is you will say the cost for placing the order is co is equal to 35 rupees.
00:24
Similarly, for inventory the cost is cc so that was given equals to 25 percent of cv where cv for inventory it is equals to 10 per kg.
00:41
So, by using all the information let us start with the first in which we have to calculate optimal lot size.
00:52
So, basically this is what ordering cost price, carrying cost price by using this we can write on that optimal lot size will be it will equals to under root over 2 times of u times of co by cv cc.
01:08
So, this is equals to under root over 2 times of.
01:12
So, annual demand was given 3500 of kg multiplied by c not is 35 divided by cc is 10 percent or 10 times of that of 3 .25.
01:27
So, this will comes out equals to 313 .05.
01:36
So, this will be the answer for first part.
01:38
Now, let us see the second part in which we have to calculate that is we will say the b part optimal number of orders in year.
01:52
So, that can be calculated by using the formula let us say n star...