Chocolate Ltd Uses 18,000 Litres of Chocolate Syrup Each Year

Multiple Choice

Chocolate Ltd uses 18,000 litres of chocolate syrup each year. The cost of carrying its chocolate syrup inventory is $0.50 per litre per year. The cost of ordering the syrup is $150 per delivery. The firm uses chocolate syrup at a constant rate throughout the year. The economic order quantity for chocolate syrup is:

A) 5,723 litres.
B) 9,487 litres.
C) 3,286 litres.
D) 2,900 litres.