Question:-
If the annual demand of an item becomes half, ordering cost double, holding cost one-fourth and the unit cost twice, then what is the ratio of the new EOQ and the earlier EOQ?
Option (A)
1/2
Option (B)
1/Ö2
Option(C)
Ö2
Option(D)
2
Correct Option:
(D)
Question Solution:

R’ = (R/2)
C0’ = 2C0
Cc’ = (Cc/4)

question-answer-faq-8871