GATE ME 2021 Set 2 — Question 46

NAT+2 / -0MediumProduction Inventory ModelInventory ControlIndustrial Engineering

Industrial Engineering → Inventory Control → Production Inventory Model

Last updated 5 September 2026

Question

Daily production capacity of a bearing manufacturing company is 30000 bearings. The daily demand of the bearing is 15000. The holding cost per year of keeping a bearing in the inventory is ₹ 20. The setup cost for the production of a batch is ₹ 1800. Assuming 300 working days in a year, the economic batch quantity in number of bearings is________(in integer).

EBQ = \sqrt{\frac{2 D C_o}{C_h (1 - D/P)}}

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EBQ = \sqrt{\frac{2 D C_o}{C_h (1 - D/P)}}

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