A television manufacturer requires 24000 pieces of wire (each 2 cm long)

every month for assembly. Ordering cost per order is Rs. 2000 and carrying (or

holding) cost is 25 percent of the unit price. The price per unit of a piece is Rs. 5.

Assuming delivery is instantaneous, find the economic order quantity (EOQ) and

the reorder point.

To find the Economic Order Quantity (EOQ) and the Reorder Point, we'll follow these steps using the given information and formulas:

• Calculate EOQ using the EOQ formula: EOQ=H2DS​​ where:
• D = Demand rate (pieces needed per month)
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