Mathematics · Inventory Management
Using the Economic Order Quantity (EOQ) formula, if the ordering cost (Co) is $20, annual demand (D) is 24,000 units, and Q (EOQ) is calculated as 400 units, what is the holding cost per unit per annum (Ch)?
- 1$49.00
- 2$36.00
- 3$6.00✓
- 4$2.50
Correct answer
$6.00
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