In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then the economic order quantity is
A) 707
B) 50
C) 1,000
D) 100

Question

Quizplus · Accepted Answer

The EOQ formula is √((2DS)/H).

Plugging in the values provided: 
EOQ = √((2*5,000*100)/1) = √(1,000,000) = 1,000.

Therefore, the optimal order quantity to minimize both ordering and holding costs would be 1,000 units.

In the Basic EOQ Model, If D = 5,000 Per