If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by

If A is the total items consumed per year, P is the procurement cost

1.	If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by
A.	AP/C
B.	2AP/C
C.	√(2AP/C)
D.	(AP/C)²
Answer» D. (AP/C)²