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Chapter 1 · Corporate and Legal AffairsPractice
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CONCEPT PRACTICE

Economic order quantity

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Volume 2 · Chapter 1 · Textbook Exercises · Q15

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What is the approximate EOQ for the product that is shown in the table below? Item Value Total annual demand 100,000 units per year Annual storage cost per stock 50 dollars/unit per year Ordering cost per order 1,000 dollars per order

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Source: FE Vol 2.pdf, PDF page 139, textbook p. 135 · Information-technology Promotion Agency, Japan · First Edition: April, 2015. ID: tb-v2-c1-q15. Publisher answer and commentary · private review.

Original question · Q15
Q15 What is the approximate EOQ for the product that is shown in the table below? Item Value Total annual demand 100,000 units per year Annual storage cost per stock 50 dollars/unit per year Ordering cost per order 1,000 dollars per order a) 1,000 b) 2,000 c) 3,000 d) 4,000

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