300x) Total Cost () = 42.5 lakhs = 360 lakhs = 377.5 lakhs = 395 lakhs = 112.5 lakhs * In all the above tables, Total Cost = Fixed Cost + Variable Cost If the volume distribution be as follows: Up to 10,000 units Between 10,000 units to Above 20,000 units 20,000 units Favourable Location Dhanbad Patna Ranchi For a volume of 18000 units favourable location is Patna which can be substantiated by the followings calculations of Total Cost:- Patna => 30,00,000 + 300 x 18,000 = 84 lakhs Ranchi => 50,00,000 + 200 x 18,000 = 86 lakhs V8 Dhanbad => 25,00,000 + 350 x 18,000 = 88 lakhs. Monthly demand for a component is 1000 units. Setting-up cost per batch is 120. Cost of manufacture per unit is *20. Rate of interest may be considered at 10% p.a. Calculate the EBQ. Calculation of EBQ: EBQ 2 x Annual Demand Set-upcost VUnit Cost * Inventory carrying cost per unit per year() (2x12x1000 x 120) (0.1x 20) - 1200 units. Illustration 17. Based on the following data on the exports of an item by a company during the various years fit a straight line. (for the time being, assume that a straight line gives a good fit). Give a forecast for the years 2013 and 2014. Year No. of items ('000) 2004 13 2005 20 2006 20 2007 28 2008 30 2009 32 2010 33 2011 38 2012 43