General Studies · Industrial Engineering - Inventory Control
Which of the following is the correct formula for Economic Order Quantity (EOQ)? Where: S = Ordering cost per order I = Inventory holding cost percentage per year C = Unit purchasing cost of item A = Annual demand quantity
- 1EOQ = √2ACIS
- 2EOQ = √2ASIC✓
- 3EOQ = √2ICAS
- 4EOQ = 5 × ACIS
Correct answer
EOQ = √2ASIC
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