Question

What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per unit per year is $50

Answer 1

The  economic order quantity if annual demand is 100 units is: 10 units.

Economic order quantity

Using this formula

Economic order quantity =√2×Annual demand× Order placement cost/ Holding cost

Let plug in the formula

Economic order quantity=√2×100×$25/$50

Economic order quantity=√5,000/50

Economic order quantity=√100

Economic order quantity=10 units

Inconclusion the  economic order quantity if annual demand is 100 units is: 10 units.

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