Computer · Industrial Engineering
Which of the following is the correct formula for Economic Order Quantity (EOQ)? (Where S = Procurement cost per order, I = Annual inventory carrying cost rate, C = Unit cost of item, and A = Annual demand)
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1EOQ = 5 × √A × CI × S
- 2EOQ = √2 × I × CA × S
- 3EOQ = √2 × A × SI × C✓
- 4EOQ = √2 × A × CI × S
Correct answer
EOQ = √2 × A × SI × C
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