In the EOQ model, the annual order cost is given by?

Name: In the EOQ model, the annual order cost is given by?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The annual order cost is given by (D/Q)*S, where D is the annual demand, Q is the order quantity, and S is the ordering cost. This formula calculates the cost of placing orders for the Q units that are needed to meet demand for the year. Therefore, the best choice is C as it represents the correct formula for calculating the annual order cost.

In the EOQ Model, the Annual Order Cost Is Given