AT Oils, a Gas Station, Retails 30,000 Gallons of Petrol

Multiple Choice

AT Oils, a gas station, retails 30,000 gallons of petrol per year. Its ordering costs are $20 per order and holding costs are $40 per gallon. According to the economic order quantity (EOQ) model, approximately how often should the company place a fresh order for petrol?

A) Every two days
B) Every three days
C) Every four days
D) Every five days