Economic order quantity

Annual demand for a component is 20 000 units per year. Storage cost per unit per year is £8, and each order costs £200. What is the company’s economic order quantity?

Correct answer:

n =  1000

Step-by-step explanation:

D=20000 C0=200 H=8  n=H2 D C0=82 20000 200=1000



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