Computer Science - Management Information Systems - Discussion

5. 

When purchase cost is $20, maintenance cost is $0.50, and annual sale are 20 units, EOQ is

[A]. 20
[B]. 40
[C]. 80
[D]. 160
[E]. None of the above

Answer: Option B

Explanation:

No answer description available for this question.

Libin.K said: (Oct 4, 2014)  
How 40 come?

Please brief the answer.

Souvik Bera said: (Aug 3, 2018)  
EOQ = √((2*purchase cost*Annual sales)/Maintenance cost)
PURCHASE COST*2= $ 40
ANNUAL SALES= 20 UNITS
SO NUMERATOR= 800
DENOMINATOR (MAINTENANCE COST)= 0.5,
EOQ= SQRT(800/0.5)= 40.

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