Ziff Corp, a Company That Manufactures Construction Materials, Uses 10,000 Tons

Multiple Choice

Ziff Corp., a company that manufactures construction materials, uses 10,000 tons of iron per year to make reinforced rods. Its ordering costs are $20 per order and holding costs are $10 per ton. According to the economic order quantity (EOQ) model, approximately how often should the company place a fresh order for iron?

A) Every four days
B) Every five days
C) Every six days
D) Every seven days