What Is the Economic Order Quantity If the Annual Demand

question 35

Multiple Choice

What is the economic order quantity if the annual demand is 10,000 units,set up cost of placing each order is $3 and the holding cost per unit per year is $2?

• A)174
• B)123
• C)245
• D)116

---

Definitions:

Efficient Frontier

Efficient Frontier is a concept in modern portfolio theory that refers to a set of investment portfolios that offer the highest expected return for a given level of risk.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns around the mean.

Covariance

A measure indicating the degree to which two variables move in relation to each other.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.