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In the EPQ Model,given That Q Is the Optimal Production

Question 32

Multiple Choice

In the EPQ model,given that Q is the optimal production quantity,d is the demand rate,p is the production rate,and H is the holding cost per unit per year,the total annual holding cost equation is given by ______.


A) [Q/2 × ((d-p) /p) ]
B) [Q × ((p-d) /p) ] × H
C) [Q/2 × ((p-d) /p) ] × H
D) Q/2 x H

Correct Answer:

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