alleryStart learning →A firm uses 1,000 units a year, pays Rs 20 per order and Rs 4 yearly holding per unit. Find the EOQ.
A50 units
B200 units
C100 units
D250 units
Answer & Solution
Correct answer: C. 100 units
EOQ is the square root of 2 x 1,000 x 20 / 4, which is the square root of 10,000, so 100 units.
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