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Step-by-step explanation:
Answer:
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Step-by-step explanation:
Mark Achin's economic order quantity in units is <u>D. 120 units</u>.
<h3>What is economic order quantity?</h3>
The economic order quantity (EOQ) is the optimal order quantity that minimizes the total costs (ordering, receiving, and holding inventory).
The formula for the economic order quantity is the square root of [2(setup costs)(demand rate)] / holding costs.
<h3>Data and Calculations:</h3>
Annual demand = 3,600
Cost price per unit = $200
Ordering cost = $40
Holding cost per unit = $20
Working days per year = 360
Lead time = 5 days
Economic order quantity (EOQ) = square root of: [2(setup costs)(demand rate)] / holding costs.
= square root of (2 x $40 x 3,600)/$20
= 120
Thus, Mark Achin's economic order quantity in units is <u>D. 120 units</u>.
Learn more about the economic order quantity at brainly.com/question/13386271
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