alleryStart learning →Demand 10,000 units, order cost Rs 40, annual holding cost Rs 5 a unit. EOQ?
A400 units
B200 units
C800 units
D1,600 units
Answer & Solution
Correct answer: A. 400 units
EOQ = square root of (2 x 10,000 x 40 / 5) = square root of 160,000 = 400 units.
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