7.  HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag of cement for a year is £4. The cost of placing an order for new inventories is estimated at £250. Based on the case scenario, what is the economic order quantity (EOQ)? A   354 bags B   500 bags C   8 bags D   1,000 bags

Essentials Of Investments
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7.  HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag of cement for a year is £4. The cost of placing an order for new inventories is estimated at £250. Based on the case scenario, what is the economic order quantity (EOQ)?

A  

354 bags

B  

500 bags

C  

8 bags

D  

1,000 bags

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