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      Question

      Using the following data, calculate the Economic Order

      Quantity (EOQ) for the consumption of materials: Annual consumption: 10,000 kg Cost per order: β‚Ή50 Cost per kg of raw materials: β‚Ή2 Storage cost: 8% of the average inventory Which of the following is EOQ?
      A 2,600 kg Correct Answer Incorrect Answer
      B 2,510 kg Correct Answer Incorrect Answer
      C 2,500 kg Correct Answer Incorrect Answer
      D 2,700 kg Correct Answer Incorrect Answer
      E 2,800 kg Correct Answer Incorrect Answer

      Solution

      Β  Hence the EOQ will be 2500 kg

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