Multiple Choice
Use the information below to answer the following questions
Aqua Ltd has forecast the yearly demand for its product as 5,000 units. 100 units of material must be used to produce the product. The cost of placing a single order for raw materials is $20, and the cost of holding one unit of material is $0.40 a year.
-Refer to the information above. The economic order quantity for raw materials is:
A) 10,000 units.
B) 1,000 units.
C) 100 units.
D) 7,071 units.
Correct Answer:
Verified
Correct Answer:
Verified
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