GATE ME · 2020 · ME
Question 48: Inventory Control
Give it a try, then reveal the answer to check your work.
Question 48
MENAT2 marksNeeds review
Consider two cases as below.
Case 1: A company buys 1000 pieces per year of a certain part from vendor ‘X’. The changeover time is 2 hours and the price is Rs. 10 per piece. The holding cost rate per part is 10% per year.
Case 2: For the same part, another vendor ‘Y’ offers a design where the changeover time is 6 minutes, with a price of Rs. 5 per piece, and a holding cost rate per part of 100% per year. The order size is 800 pieces per year from ‘X’ and 200 pieces per year from ‘Y’.
Assume the cost of downtime as Rs. 20 per hour. The percentage reduction in the annual cost for Case 2, as compared to Case 1 is ______ (round off to 2 decimal places).
Log in to check the answer
You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerEXPLORE & PRACTISE
Paper and topic context
See where this question comes from and choose what to practise next.
2020ME
GATE ME 2020 · Paper 1
Mechanical Engineering · Original paper archive
- Section
- Mechanical Engineering
- Question type
- Numerical answer (NAT)
- Marks
- 2 marks
Practise related topics
Explore more previous year questions using this question’s imported topic tags.
mechanical engineering
GATE ME previous year questions
mechanics
GATE ME previous year questions
manufacturing
GATE ME previous year questions
inventory control
GATE ME previous year questions
Comments
Ask a question, share your approach, or help someone understand.
Log in to view the discussion
You’re not logged in. Log in or create an account to see discussions and add comments.