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 months

  2. 1.5 months

  3. 2 months

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It is 1.5 months. Time between two consecutive orders =     12 months         = 1.5 months                                                                        8 orders per year

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