Question

The formula above is used to estimate the ideal quantity, *Q*, of items a store manager needs to order given the demand quantity, *d*; the setup cost per order, *K*; and the storage cost per item, *h*. Which of the following correctly expresses the storage cost per item in terms of the other variables?

Hint:

**Hint: **

The storage cost per item is given by h. We need to modify the given equation to find an expression for h. The first step is to remove the square root by squaring both sides. Next, we just need to bring h on the left-hand side and the rest of the quantities on the right-hand side. This should give us the required result

## The correct answer is:

### Given,

where

*Q* is the quantity,

K is the setup cost per order,

d is the demand quantity,

h is the storage cost per item.

Now

Squaring both sides, we have

Multiplying *h* both sides,

Dividing by on both sides, we get

Thus, the value of h in terms of other variables is given by,

The correct option is C)

**Note:**

Whenever there is an equation with a square root involved, first we try to remove that square root to get a clear picture of the equation. It is easier to operate on an equation with no square roots or log or inverse.

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