Q=F2KDFor companies that monitor the inventory of a product, the equation gives Q, the quantity to order of the product as a function of K, the ordering cost, D, the annual demand for the product and F, the average holding cost of the product. Which of the following equations correctly gives the annual demand for the product in terms of the quantity to order, the ordering cost, the annual demand, and the average holding cost for the product?Choose 1 answer:(A) D=K2FQ(B) D=2KFQ(C) D=K2FQ2
Q. Q=F2KDFor companies that monitor the inventory of a product, the equation gives Q, the quantity to order of the product as a function of K, the ordering cost, D, the annual demand for the product and F, the average holding cost of the product. Which of the following equations correctly gives the annual demand for the product in terms of the quantity to order, the ordering cost, the annual demand, and the average holding cost for the product?Choose 1 answer:(A) D=K2FQ(B) D=2KFQ(C) D=K2FQ2
Given equation for Q: We start with the given equation for Q:Q=F2KDWe want to solve for D, so we need to isolate D on one side of the equation.
Squaring both sides: First, we square both sides of the equation to eliminate the square root:(Q)2=((2KD)/F)2This simplifies to:Q2=(2KD)/F
Multiplying by F: Next, we multiply both sides of the equation by F to get rid of the division by F: F×Q2=2KD
Dividing by 2K: Now, we divide both sides of the equation by 2K to isolate D:(2KF⋅Q2)=D
Expression for D: Simplify the equation to find the expression for D:D=2KF⋅Q2This matches option (C) from the given choices.
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