question_answer

Given that, \[\theta =\] procurement cost per order, D = number of units demanded per year, H = holding cost per unit per year, i = rate of interest, p = purchase prices per unit. The procurement quantity per order (Q) is given by:

A) \[Q=\frac{2.\theta .D}{H+iP}\]              

B) \[Q=\sqrt{\frac{2.\theta .D}{iH+P}}\]

C) \[Q=\sqrt{\frac{2.\theta .D}{H+iP}}\]    

D) \[Q=\sqrt{\frac{2.\theta }{D(H+iP)}}\]