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If dequals=​1,000 units per​ year, sequals=​$62.50 per​ order, and hequals=​$0.50 per unit per​ year, what is the economic order​ quantity?

If dequals=​1,000 units per​ year, sequals=​$62.50 per​ order, and hequals=​$0.50 per unit per​ year, what is the economic order​ quantity?
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If dequals=​1,000 units per​ year, sequals=​$62.50 per​ order, and hequals=​$0.50 per unit per​ year, what is the economic order​ quantity?

asked
User Ashaki
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7.9k points

1 Answer

6 votes
The formula is
EOQ=√((2DS)÷H)
D annual demand 1000
S ordering or setup cost 62.5
H annual holding cost 0.5
EOQ=√((2×1,000×62.5)÷0.5)=500
answered
User Shams Reza
by
8.3k points
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