1.In the basic EOQ model, if D = 5,000 per year, S = $100, and H...
1.In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then the
economic order quantity is ______.
a. 707
b. 50
c. 1,000
d. 100
Homework Answers
Answering the first question as per Chegg policy
Answer 1: Option C
Explanation: Yearly demand = 5,000 Units
Ordering cost = S = $100
Holding cost = H = $1 per unit per year
Optimal Order quantity = EOQ = Sq. Root [(2 x Annual demand x Ordering cost) / Holding cost]
= 
[(2 x 5000
x 100) / 1]
= 1000 Units
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