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Question

If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by
Options:
A .  `(AP)/(C)`
B .  `(2AP)/(C)`
C .  `sqrt((2AP)/(C))`
D .  `((AP)/(C))^2`
Answer: Option C



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