Annual demand 2,400 units, ordering cost Rs 150, holding Rs 8 a unit. EOQ?
A300 units
B450 units
C200 units
D150 units
Answer & Solution
Correct answer: A. 300 units
EOQ = square root of (2 x 2,400 x 150 / 8) = square root of 90,000 = 300 units.
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