In the economic order quantity equation, the numerator under the square root includes
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 Economic Order Quantity (EOQ) formula's numerator under the square root includes the annual demand and the cost of placing an order. This is because EOQ aims to minimize the total holding costs and ordering costs.

In the Economic Order Quantity Equation, the Numerator Under the Square