A Company Has Steady Annual Demand of 4,000 Units $$E O Q = \sqrt { \frac { 2 C _ { O } D } { C _ { H } } }$$

Multiple Choice

A company has steady annual demand of 4,000 units.Ordering costs £250 per order.The holding cost is £8 per unit per year.
Using the Economic Order Quantity,what is the optimum order quantity for the company,and how many orders should be placed per year?
Formula: $$E O Q = \sqrt { \frac { 2 C _ { O } D } { C _ { H } } }$$

A) Order 4,000 units at a time, with a total of 1 order per year
B) Order 16 units at a time, with a total of 250 orders per year
C) Order 500 units at a time, with a total of 8 orders in the year
D) Impossible to calculate, since we do not know cost per unit