The economic order quantity is the square root of 2 times
A)the demand for the period divided by the cost of carrying one unit in inventory for the period.
B)order set up cost divided by the cost of carrying one unit in inventory for the period.
C)the cost of carrying one unit in inventory for the period divided by the order set up cost.
D)order set up cost times the demand for the period divided by the cost of carrying one unit in inventory for the period.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula is the square root of 2 times the order setup cost times the demand for the period, all divided by the cost of carrying one unit in inventory for the period. This formula helps in determining the most efficient order quantity that minimizes the total inventory costs.

The Economic Order Quantity Is the Square Root of 2