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A French Restaurant Sells 450 Cases of Wine Per Year

Question 18

Multiple Choice

A French restaurant sells 450 cases of wine per year. The cost of ordering and receiving a shipment of wine is $2.50. The cost of holding a case of wine in the restaurant cellar for a year is $10. Use the EOQ model to determine the most economic order quantity for the wine.


A) 10 cases of wine
B) 15 cases of wine
C) 20 cases of wine
D) 25 cases of wine
E) 30 cases of wine

Correct Answer:

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