The demand rate for a particular item is 12000 units/year. The ordering cost is Rs.100 per order and the holding cost is Rs.0.80 per item per month. If no shortages are allowed and the replacement is instantaneous, then the economic order quantity is

The demand rate for a particular item is 12000 units/year. The orderin

1.	The demand rate for a particular item is 12000 units/year. The ordering cost is Rs.100 per order and the holding cost is Rs.0.80 per item per month. If no shortages are allowed and the replacement is instantaneous, then the economic order quantity is
A.	1500 units
B.	2000 units
C.	500 units
D.	1000 units
Answer» D. 1000 units