Railways NTPC (Technical Ability) Production Engineering and Planning Question Bank Production Planning

  • question_answer
    For economic manufacture, the total annual cost is given as \[12M\left( P+\frac{D}{Q} \right);\] where
    1. M is number of parts made per month
    2. P is processing cost per part.
    Which one of the following is represented by D/Q in the above expression?

    A) Setting up cost   

    B) profit per part

    C) Bonus              

    D) setting up cost/part

    Correct Answer: D

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