| Product | Demand | Order cost (in Rs./order) | Holding cost (in Rs./unit) |
| A | 100 | 100 | 4 |
| B | 400 | 100 | 1 |
A) 1 : 1
B) 1 : 2
C) 1 : 4
D) 1 : 8
Correct Answer: C
Solution :
\[EOQ=\sqrt{\frac{2D{{C}_{0}}}{{{C}_{c}}}}\] \[Q{{*}_{A}}=\sqrt{\frac{2\times 100\times 100}{1}}=50\sqrt{2}\] \[Q{{*}_{B}}=\sqrt{\frac{2\times 40\times 100}{1}}=200\sqrt{2}\] \[{{\text{Q}}^{\text{*}}}_{\text{A}}\text{/Q}{{\text{*}}_{\text{B}}}=50/100=1\,:\,4\]
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