MCQOPTIONS
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| 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. | √(AP/C) |
| D. | (AP/C)² |
| Answer» D. (AP/C)² | |