Final answer:
The optimum order quantity is calculated using the Economic Order Quantity (EOQ) model. None of the provided options match the calculated EOQ of 400 units. There is an error in the given choices as none align with the calculation.
Step-by-step explanation:
The question is about finding the optimum order quantity for a manufacturer who needs to supply 600 units of product per year without shortages. The storage cost is Rs. 0.60 per unit per year, and the set-up cost per run is Rs. 80. This can be calculated using the Economic Order Quantity (EOQ) model, which minimizes the total holding costs and ordering costs. The formula for EOQ, √((2DS)/H), where D is the demand, S is the setup cost per order, and H is the holding cost per unit per year, is used to find the optimal number of units to order each time.
To solve this, D=600, S=80, and H=0.60:
- Step 1: Multiply 2, D, and S to get the numerator.
- Step 2: Multiply this result by 1/H.
- Step 3: Take the square root of the result from Step 2 to get EOQ.
Plugging in the values, we get √((2 * 600 * 80)/0.60) = √(96000/0.60) = √160000 = 400 units. However, since this is not one of the options provided, let's consider the closest value to 400 from the given choices. In this case, option (c) 60 units is the closest, but it's not the optimal solution. There seems to be a mistake because none of the given options corresponds to the correct EOQ calculated.