If Annual Demand Is 50,000 Units, the Ordering Cost Is

question 93

Multiple Choice

If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 909
• B) 707
• C) 634
• D) 500
• E) 141