Multiple Choice
Management wishes to use a FOQ lot- sizing rule for an item based on the economic order quantity. If the annual demand is 1200 units, the holding cost is $10/unit/year, and the setup cost is $50/lot, which one of the following fixed order quantities is most appropriate?
A) 90 units
B) 110 units
C) 130 units
D) 150 units
Correct Answer:
Verified
Correct Answer:
Verified
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