Question: Naidoo ( Pty ) Ltd uses the EOQ model to determine the quantity of raw material to order. The following details are available: Average usage

Naidoo (Pty) Ltd uses the EOQ model to determine the quantity of raw material to order. The following details are available: Average usage per week
Number of production weeks per year
Purchase price per unit of the raw material
Cost of placing an order
9000 units
Costs of carrying one unit of the raw material per year
75
R 37,50
R60,00
R9,00
The EOQ that Naidoo (Pty) Ltd should order is?
a.3000
b.7725
c.4800
d.3900
 Naidoo (Pty) Ltd uses the EOQ model to determine the quantity

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