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For a Particular Item the Usage Is 2000 Units Per

Question 6

Multiple Choice

For a particular item the usage is 2000 units per year, the ordering cost is $10, the inventory carrying cost is 20% and the unit cost is $5. The economic order quantity is:


A) 20 units
B) 200 units
C) 2000 units
D) 400 units
E) 4000 units

Correct Answer:

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