Subject: Operating marketing management 3000
please answer the correct one i tried option A its wrong.
In the basic EOQ model, if D = 5,000 per month, S = $10, and H = $1 per unit per year, then the time between orders would be approx. How much? Take 365 days in a year and pick the closest answer. Hint: Compute the economic order quantity first. EOQ = Sq Root of [(2xDxS)/H], D = annual demand; S = Avg cost of placing an order; H = Avg cost of holding one unit for 1 year Round up wherever necessary.
A Every 15 days approx
B Every 5 days approx
C every 8 days approx
D every 3 days approx