What is the economic order quantity if the annual demand is 10,000 units,set up cost of placing each order is $3 and the holding cost per unit per year is $2?
A) 174
B) 123
C) 245
D) none of the above

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) is calculated using the formula: EOQ = sqrt((2 * Demand * Setup Cost) / Holding Cost). Plugging in the values: EOQ = sqrt((2 * 10,000 * 3) / 2) = sqrt(30,000) = 173.21, which rounds to 174.

What Is the Economic Order Quantity If the Annual Demand