General Studies · Inventory Control
Which of the following is the correct equation for Economic Order Quantity (EOQ)? Let S = Procurement Cost per order, I = Inventory carrying cost percentage per year, C = Unit cost of item, and A = Annual demand.
- 1EOQ = √2ACIS
- 2EOQ = √2ASIC✓
- 3EOQ = √2ICAS
- 4EOQ = 5 × ACIS
Correct answer
EOQ = √2ASIC
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