A firm sells 4,500 units of an item each year.The carrying cost per unit is $2.15 and the fixed costs per order are $69.What is the economic order quantity?
A)374 units
B)421 units
C)497 units
D)537 units
E)623 units

Name: A firm sells 4,500 units of an item each year.The carrying cost per unit is $2.15 and the fixed costs per order are $69.What is the economic order quantity? A)374 units B)421 units C)497 units D)537 units E)623 units
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Question

Quizplus · Accepted Answer

EOQ = [(2 × 4,500 × $69)/$2.15]^1/2 = 537 units

A Firm Sells 4,500 Units of an Item Each Year