In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic order quantity is approximately
A) 24
B) 100
C) 141
D) 490
E) 600

Question

Quizplus · Accepted Answer

EOQ formula is given as
EOQ = √((2DS)/H)

Here,
D = 6000 per year
S = $100
H = $5 per unit per month = $60 per unit per year

Hence, EOQ = √((2*6000*100)/60) = 141.42 ≈ 141

Therefore, the best choice is C with the calculated EOQ value.

In the Basic EOQ Model, If D=6000 Per Year, S=$100