alleryStart learning →A firm needs 1,800 units a year, ordering costs Rs 50 and holding Rs 8 a unit. Orders a year at EOQ?
A12 orders
B18 orders
C15 orders
D9 orders
Answer & Solution
Correct answer: A. 12 orders
EOQ = square root of (2 x 1,800 x 50 / 8) = 150 units, so orders = 1,800 / 150 = 12.
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