GATE ME 2014 Set 3 — Question 61
Go beyond PYQs with Success TrackerAI-powered personalised practice and doubt support. Unlimited practice on eligible plans; AI usage limits apply.MCQ+2 / -0.67MediumProduction Inventory ModelInventory ControlIndustrial Engineering
Industrial Engineering → Inventory Control → Production Inventory Model
Last updated
Question
A manufacturer can produce 12000 bearings per day. The manufacturer received an order of 8000 bearings per day from a customer. The cost of holding a bearing in stock is Rs. 0.20 per month. Setup cost per production run is Rs. 500. Assuming 300 working days in a year, the frequency of production run should be
Correct answer
(C) 6.8 days
Solution
Given:
Production rate, per day
Demand rate, per day
Holding cost, per month
Setup cost,
Working days per year = 300
Working days per month = days
Monthly demand,
Economic Batch Quantity (EBQ) is given by:Frequency of production run (Time between runs) days.
So, the frequency is approximately 6.8 days.
Production rate, per day
Demand rate, per day
Holding cost, per month
Setup cost,
Working days per year = 300
Working days per month = days
Monthly demand,
Economic Batch Quantity (EBQ) is given by:Frequency of production run (Time between runs) days.
So, the frequency is approximately 6.8 days.
Continue learning with Success Tracker
A step still unclear? Work through it with support
Use Success Tracker to ask about the reasoning, then try another GATE ME question to check your understanding.
AI-powered practice· Unlimited practice on eligible plans
- PYQs with solutions
- Attempt available previous-year questions, then compare your reasoning with the worked solution. Coverage varies by stream.
- Practice that adapts
- Choose a topic, work on weaker areas and bookmark questions to revisit. Your attempts feed your progress tracking.
- AI doubt support
- Ask follow-up questions about a step or concept while practising, instead of stopping at the final answer.
Unlimited practice is available on eligible plans. Free practice and AI usage have limits; check the current plan allowances before choosing.
This page stays readable without an account. AI responses can be wrong; check them against the solution and source material.
More questions on Inventory Control
2026 Set 1 Q46An objective function of primal variables ( and ) is described below: Minimize…2026 Set 1 Q47Four jobs are on order in a factory. As on day 20 of the production calendar, the corresponding due…2026 Set 1 Q60The actual demand for castings in a factory is units and units for the months of…2026 Set 1 Q61The inventory holding cost of an item is ₹ 0.50 per unit per month and the ordering cost per order…2026 Set 1 Q65The activities of a PERT network and their corresponding activity time estimates (in weeks) i.e.,…