Using the Simple Order Quantity Model in an Inventory Control

question 74

Multiple Choice

Using the simple order quantity model in an inventory control problem, Kathy calculated the order quantity to be 1,000 units. In a review, she found out that the demand is actually double that of the quantity she had used and the holding cost is only half that of the value she used. The new economic order quantity using the correct data will be

• A) 1,000.
• B) 2,000.
• C) 1,414.
• D) 707.1.
• E) cannot be found without other cost information.