An item experiences an annual demand of units It costs

Question

An item experiences an annual demand of 7,200 units. It costs $8 to hold an item in inventory for one year and $16 to place an order. If the EOQ model is used, what is the time between orders? Assume that there are 52 business weeks in a year.

A) less than 1 week

B) greater than 1 week but less than or equal to 2 weeks

C) greater than 2 weeks but less than or equal to 3 weeks

D) greater than 3 weeks

Answer

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