Question

Using the following data, calculate the Economic Order Quantity (EO

  • Q for the consumption of materials: Annual consumption: 10,000 kg Cost per order: ₹50 Cost per kg of raw materials: ₹2 Storage cost: 8% of the average inventory Which of the following is EOQ?
A 2,600 kg
B 2,510 kg
C 2,500 kg
D 2,700 kg
E 2,800 kg
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