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# MGT402 Assignment#01 Solution & Discussion Spring 2011

MGT402 Assignment#01 Solution & Discussion Spring 2011

See the attached file for MGT402 Assignment#01 Solution

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anybody share the solution idea..!!
CARRYING COST = 6%
REDUCED BY = 2%
NEW CARRYING COST = 4%

EOQ = SQRT(2xRUxOC/ UC x CC% )
EOQ = SQRT ( 2*120,000*1470/60*4%)
EOQ = SQRT ( 352800000 / 2.4)
EOQ = SQRT ( 147000000)
EOQ = 12124
EOQ = SQR(2*120000*1470)/(60*0.0588) = 10000 same answre
Here is the correct 2nd Question After reduction

Ordering Cost = 1500
REDUCED BY 2= % = 1500 * 2% = 30
NEW ORDERING COST = 1500 – 30 = 1470

CARRYING COST = 6%
REDUCED BY = 2%

NEW CARRYING COST = 4%
NEW CARRYING COST = 6% - (6*2/100) = 5.88%

EOQ = SQRT(2xRUxOC/ UC x CC% )
EOQ = SQRT ( 2*120,000*1470/60*5.88%)
EOQ = SQRT ( 352800000 / 3.528)
EOQ = SQRT ( 100000000)
EOQ = 10000

So, there will be no change in EOQ.
tariq bhai, is this the final and correct sol? and wat bout the 1st question, is the solution in pdf file confirmed correct?

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