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Answer (D) is correct . The number of tricycles to be produced is 96,200. Each requires one unit of B12. The number of bicycles to be produced is 128,750. Each requires four units of B12, a total of 515,000. Combining the 96,200 units needed for tricycles with the 515,000 units needed for bicycles results in a total demand of 611,200 units. An additional 600 units (1,800 – 1,200) will have to be ordered to permit the increase in the inventory of B12. Dividing the annual requirement of 611,800 units by the 70,000-unit EOQ results in 8.74 orders per year. Because partial orders are not possible, nine orders will have to be placed.

Answer (A) is incorrect because Ordering four times will meet the need for tricycle but not bicycle production.
Answer (B) is incorrect because Ordering five times will meet the need for tricycle but not bicycle production.
Answer (C) is incorrect because Eight orders will suffice only for the bicycles.