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Fashion Clothier's Economic Ordering Quantity (EOQ) for Its Dyes Is

Question 52

Multiple Choice

Fashion Clothier's economic ordering quantity (EOQ) for its dyes is 2,000 units. If the total demand is 100,000 units per period, the carrying cost per unit is 15 percent of the inventory value, the dyes purchase price is $10, and the fixed cost per order is $30, then Fashion's total inventory cost is_____. 


A) $1,500
B) $4,500
C) $6,000
D) $11,500
E) $3,000

Correct Answer:

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