GATE Papers >> Mechanical >> 2018 >> Question No 128

Question No. 128 Mechanical | GATE 2018

A local tyre distributor expects to sell approximately 9600 steel belted radial tyres next year. Annual carrying cost is Rs. 16 per tyre and ordering cost is Rs. 75. The economic order quantity of the tyres is


Answer : (C) 300


Solution of Question No 128 of GATE 2018 Mechanical Paper

Annual demand (D) =9600

Carrying cost (Cn) = Rs. 16 per tyre, per year

Ordinary cost (C0) = Rs. 75 per order

Economic order quality $ \begin{array}{l}\mathrm Q\ast=\sqrt{\frac{2{\mathrm{DC}}_\circ}{{\mathrm C}_\circ}}\\\end{array} $

$ \begin{array}{l}=\sqrt{\frac{2\times9600\times75}{16}=300}\\\end{array} $

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