In the basic EOQ model,if D = 6000 per year,S = $100,and holding cost = $5 per unit per month,what is the economic order quantity?
A)24
B)100
C)141
D)490
E)600

Question

Quizplus · Accepted Answer

EOQ formula is given as: EOQ = sqrt((2DS)/H)
Plugging in the values:
EOQ = sqrt((2*6000*100)/5)
EOQ = sqrt(240,000)
EOQ = 489.897
Rounding off to the nearest whole number, EOQ = 141. Therefore, the best choice is C.

In the Basic EOQ Model,if D = 6000 Per Year,S