Question

What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per unit per year is $50

Answer 1

The  economic order quantity if annual demand is 100 units is: 10 units.

Economic order quantity

Using this formula

Economic order quantity =√2×Annual demand× Order placement cost/ Holding cost

Let plug in the formula

Economic order quantity=√2×100×$25/$50

Economic order quantity=√5,000/50

Economic order quantity=√100

Economic order quantity=10 units

Inconclusion the  economic order quantity if annual demand is 100 units is: 10 units.

Learn more about  economic order quantity here:brainly.com/question/14625177