Multiple choice

The annual demand for an item is 6,400 units. What is the time period between two consecutive orders in a year when the economic order quantity is 800 units?

  1. 3 orders per year

  2. 8 orders per year

  3. 2 orders per year

  4. 7 orders per year

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It is 8 orders per year  Number of orders =     Annual demand                =   6,400 units = 8 orders per year                                     Economic Order Quantity          800 units