$$ rac{{2D}}{{Ci}}$$
$$ rac{{Ci}}{{100}}$$
$$sqrt { rac{{2D{C_0}}}{{Ci}}} $$
$$ rac{D}{{100}}$$
Answer is Right!
Answer is Wrong!
The correct answer is C.
Economic order quantity (EOQ) is the optimal quantity of an item to order at a time in order to minimize total inventory costs. It is calculated by the following formula:
$$EOQ = \sqrt {\frac{{2D{C_0}}}{{Ci}}} $$
where:
- $D$ is the annual demand for the item
- $C_0$ is the fixed cost of placing an order
- $C_i$ is the carrying cost per unit per year
Option A is the formula for the economic production quantity (EPQ), which is the optimal quantity of an item to produce at a time in order to minimize total production costs.
Option B is the formula for the carrying cost per unit per year.
Option D is the formula for the ordering cost per order.