Annual Demand for a Product Is 40,000 Units

question 89

Multiple Choice

Annual demand for a product is 40,000 units.The product is used at a constant rate over the 365 days the company is open every year.The annual holding cost for the product is estimated to be $2.50 per unit,and the cost of placing each order is $125.00.If the company orders according to the economic order quantity (EOQ) formula,then the time between orders (order cycle time) is

• A)18.25 days.
• B)24.33 days.
• C)36.5 days.
• D)73 days.

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