$${left( { rac{{2{ ext{AO}}}}{{ ext{C}}}} ight)^2}$$
$$sqrt { rac{{2{ ext{AO}}}}{{ ext{C}}}} $$
2A ÷ OC
2AOC
Answer is Right!
Answer is Wrong!
The correct answer is B.
The economic order quantity (EOQ) is the order quantity that minimizes the total annual cost of ordering and carrying inventory. It can be calculated using the following formula:
$$EOQ = \sqrt {\frac{{2{\text{AO}}}}{{\text{C}}}}$$
where:
- A = Annual demand
- O = Order cost
- C = Carrying cost per unit per annum
Option A is incorrect because it is the square of the EOQ. Option C is incorrect because it is the order quantity that minimizes the ordering cost. Option D is incorrect because it is the total annual cost of ordering and carrying inventory.