What Is the Economic Ordering Quantity (EOQ) for a Company

question 7

Multiple Choice

What is the Economic Ordering Quantity (EOQ) for a company with annual demand of 5,000 units, an order cost of $35 and a holding cost of $0.25 (to nearest whole number) .

• A) 110
• B) 115
• C) 120
• D) 125

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Definitions:

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in an injury or harm.

Liable

Legally responsible for one’s actions or an outcome, often involving a duty to compensate for harm or damage.

Duty

A moral or legal obligation; the responsibility to fulfill tasks, obligations, or roles as required by the law or social norms.

Conduct

Behavior or actions of an individual or organization, especially in relation to legal, ethical, or professional standards.