Correct Answer - Option 4 : 1000√2

**Concept:**

Economic order quantity (EOQ) is represented with Q*

Q* = \(\sqrt {\frac{{2D{C_0}}}{{{C_h}}}} \)

Where D is annual demand, C_{0 }is ordering cost, C_{h }is holding cost

__Calculation:__

__Given:__

Q^{* }= 1000

\(\sqrt {\frac{{2D{C_0}}}{{{C_h}}}} \) = 1000

When demand D will be doubled then the new economic order quantity will be:

Q^{*} = \(\sqrt {\frac{{2\left( {2D} \right){C_0}}}{{{C_h}}}} \)

=\(\sqrt {\frac{{2D{C_0}}}{{{C_h}}}} \)× √2

= 1000 × √2

= **1000√2**