Question

If the annual requirement of materials is
12000 units, the EOQ is 4000 units and
ordering cost are 100 per order, the total
Ordering cost would be
O Rs.300
O Rs.400
O Rs.500
O Rs.250​

Answer 1

Explanation:

The EOQ formula is the square root of (2 x 1,000 pairs x $2 order cost) / ($5 holding cost) or 28.3 with rounding. The ideal order size to minimize costs and meet customer demand is slightly more than 28 pairs of jeans.