1.

Given that, \[\theta =\] procurement cost per order, D = number of units demanded per year, H = holding cost per unit per year, i = rate of interest, p = purchase prices per unit. The procurement quantity per order (Q) is given by:

A. \[Q=\frac{2.\theta .D}{H+iP}\]              
B. \[Q=\sqrt{\frac{2.\theta .D}{iH+P}}\]
C. \[Q=\sqrt{\frac{2.\theta .D}{H+iP}}\]    
D. \[Q=\sqrt{\frac{2.\theta }{D(H+iP)}}\]
Answer» D. \[Q=\sqrt{\frac{2.\theta }{D(H+iP)}}\]


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