Question:medium

The demand for a commodity is 100 units per day. Every time an order is placed, a fixed cost of Rs 400 is incurred and the holding cost is Rs 0.08 per unit per day. If the lead time is 13 days, then the economic lot size and the reorder point are in units

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Always ensure your time units are fully uniform! Here, demand is units/day and holding cost is Rs/unit/day. Because they match, you do not need to convert them into annual figures. For ROP, remember: if Lead Time Demand > $Q$, subtract $Q$ repeatedly until the value is less than $Q$. \[ 1300 - 1000 = 300 \]

Updated On: Jul 9, 2026

800 and 130
840 and 100
890 and 300
1000 and 300

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The Correct Option is D

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