Question
Entrepreneurship Question on Financial Markets
Annual quantity of pens sold by a shop is 1,200 at the rate of ₹100 per unit. Cost of placing an order and receiving is ₹500 per order. Inventory holding cost ₹30 per annum. Calculate EOQ?
A
2000 units
B
200 units
C
4000 units
D
20 units
Answer
200 units
Explanation
Solution
The correct option is(B): 200 units