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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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