1.

Optimum reorder quantity is

A. \(\sqrt {\frac{{2\left( {annual~unit~usage} \right) \times \left( {cost~per~set - up~or~order} \right)}}{{\left( {cost~per~unit} \right) \times \left( {percent~annual~carrying~cost} \right)}}} \)
B. \(\sqrt {\frac{{2\left( {cost~of~item} \right)}}{{\left( {annual~usage} \right) \times \left( {percent~annual~carrying~cost} \right)}}} \)
C. \(\sqrt {\frac{{2\left( {cost~per~unit} \right) \times \left( {percent~annual~carrying~cost} \right)}}{{\left( {annual~unit~storage} \right) \times \left( {cost~per~set - up~or~order} \right)}}} \)
D. \(\sqrt {\frac{{2\left( {cost~per~unit} \right) \times \left( {annual~carrying~cost} \right)}}{{\left( {cost~per~set - up~or~order} \right) \times \left( {percent~annual~carrying~cost} \right)}}} \)
Answer» B. \(\sqrt {\frac{{2\left( {cost~of~item} \right)}}{{\left( {annual~usage} \right) \times \left( {percent~annual~carrying~cost} \right)}}} \)


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