An assistant manager is reviewing the costs associated with one of the store's better selling products. The

Question:

An assistant manager is reviewing the costs associated with one of the store's better selling products. The data available follows.
Demand= 400 units/year
Order cost= $25/order
Holding cost= $ .50 unit/year
a. They currently order a one-year supply. What are the total annual ordering and holding costs?
b. What would be the EOQ and its associated ordering and holding costs?