Annual demand is 3,600 units, ordering cost is Rs. 100 per order and holding cost is Rs. 8 per unit per year. The EOQ is:

A. 300 units
B. 600 units
C. 450 units
D. 90 units
Correct Answer: A. 300 units

EOQ = square root of (2 x 3,600 x 100 / 8) = square root of 90,000 = 300.

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