Product-Y is sold for ₹20 per unit. The demand for the product is at a constant rate of 2,000 units per month. The cost price per unit is ₹10. The ordering cost is ₹1.20 per order and the carrying cost is 10% per annum.

Annual demand of the product = 2,000 * 12 = 24,000 units EOQ = √(2AB/C) Where: A = Annual Demand = 24,000 units B = Ordering cost per unit per annum = ₹1.20 C = Carrying cost per unit per annum = 10% of cost price = 10% of ₹10 = ₹1 EOQ = √(2 * 24,000 * ₹1.20 / ₹1) = √57,600 = 240 units No. of orders needed per year = 24,000 / 240 = 100 orders