Question No 28:
RS is a retailer of pet products. A dog basket that it sells has an annual demand of 15,000 units. Demand is spread evenly throughout the year.
RS pays its supplier $60 for each basket. Ordering costs are $150 per order and the annual cost of holding one basket in inventory is estimated to be $6.
The economic order quantity (EOQ) for the dog basket to the nearest unit is:
A. 612 units
B. 173 units
C. 866 units
D. 1,025 units
Answer: C
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