Newcastle Company has determined the following costs are associated with one of its products. conomic order quantity (EOQ)
Annual quantity used in units 3000
Cost of placing one order ( 10
nnual cost of carrying one unit in stock (£) 0.8
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If the cost of placing an order is increased to £15 and the annual quantity used in units decreases to 2,000 units the economic order quantity (EOQ) is
A) 274 units.
B) 215 units.
C) 450 units.
D) 106 units.
Correct Answer:
Verified
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