Norwich Company has determined the following costs are associated with one of its products. conomic order quantity (EOQ)
Annual quantity used in units 4800
Cost of placing one order (f) 3
nnual cost of carrying one unit in stock (E) 8
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If the cost of carrying one unit in stock is increased to £4 and the annual quantity used in units increases to 20,000 units the economic order quantity (EOQ) is
A) 1225 units.
B) 568 units.
C) 1235 units.
D) 1866 units.
Correct Answer:
Verified
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