In the economic order quantity equation,what does the numerator under the square root include?
A)annual demand and cost of placing an order
B)annual demand and unit carrying cost
C)unit carrying cost and cost of placing an order
D)order quantity and cost of placing an order

Question

Quizplus · Accepted Answer

The numerator under the square root in the Economic Order Quantity (EOQ) equation includes the annual demand and the cost of placing an order. This is because the EOQ formula is designed to minimize the total holding costs and ordering costs.

In the Economic Order Quantity Equation,what Does the Numerator Under