Question: Inventory Management Problem. The EOQ formula is : 2DCo/Ch D (annual demand for cases of Pepsi ) = 48,000 C0 (cost of placing an order)

Inventory Management Problem. The EOQ formula is : 2DCo/Ch D (annual demand for cases of Pepsi ) = 48,000 C0 (cost of placing an order) = $50 I (annual inventory holding charge as % of cost) = 20% C (cost per case) = $10 Ch = (holding cost per unit) = $2. What is the economic order quantity (EOQ) of Pepsi? a. 1,349 cases b. 1,600 cases c. 1,000 cases d. 1,549 cases

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