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      Question

      Which of the following is the formula for Economic Order

      Quantity (EOQ)?
      A EOQ = sqrt((2DS)/H) where D = demand, S = order cost per order, H = holding cost per unit per year Correct Answer Incorrect Answer
      B EOQ = D/S only Correct Answer Incorrect Answer
      C EOQ = (2D)/H only Correct Answer Incorrect Answer
      D EOQ = sqrt(H/(2DS)) Correct Answer Incorrect Answer
      E EOQ is not quantifiable Correct Answer Incorrect Answer

      Solution

      EOQ minimizes total ordering + holding costs.

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