Companies often use this formula to determine how much of a certain item to order: where Q
Question:
Companies often use this formula to determine how much of a certain item to order:
where
Q = order quantity
D = annual demand
S = ordering cost
H = annual holding cost per unit
If annual demand is 400 units, ordering cost is $36, and annual holding cost is $2 per unit, what is the order quantity?
Transcribed Image Text:
Q= 2DS H
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