The annual demand for tennis racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs of the company amount to P5. The optimum order quantity in units for tennis racquets is (rounded to the nearest unit): Group of answer choices 500 250 100 625

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section10.4: Simulation With Built-in Excel Tools
Problem 15P
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The annual demand for tennis racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs of the company amount to P5. The optimum order quantity in units for tennis racquets is (rounded to the nearest unit):

Group of answer choices

  1. 500
  2. 250
  3. 100
  4. 625
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