The general chemical company uses 150,000 gallons of hydrochloric acid per month. the cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. the firm uses the chemical at a constant rate throughout the year. the chemical's economic order quantity is
a) 32,863 gallons.
b) 11,619 gallons.
c) 9,487 gallons.
d) 1,900 gallons.

ROQ will be 32863 gallons

So option (a) will be the correct answer

Explanation:

We have given that company uses 150000 gallons of hydrochloric acid per month

Ordering cost = $150

And the holding cost = $0.5

We know that 1 year = 12 month

So annual demand = 12 ×150000 = 1800000

We have to fond the economic order quantity EOQ

We know that EOQ is give by

So option (a) will be correct answer

answer; /// the above statement is (true); good luck

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20