Question

The Jones company orders 11 times per year with EOQ of 350. What is the annual demand of the firm based on the EOQ theory?

A. 3850
B. 3000
C. 200
D. 4280
E. None of the above

Answer 1

The annual demand of the firm is 3850.

Step-by-step explanation:

The annual demand of the firm can be calculated by multiplying the EOQ (Economic Order Quantity) with the number of orders per year. In this case, the firm orders 11 times per year and the EOQ is 350. So, the annual demand would be 11 x 350 = 3850.