Lopez Chemical Inc. requires 20,000 gallons of material annually; the cost of placing an order is $20; the annual carrying cost per gallon is $5.
Required:
Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing shown below.

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Order Number o Total Order Average Tta Carrying Total Order& Cost $40 Carrying Cost $1,040 Cost Inventory Orders 100 50 Size 100 200 300 400 500 $1,000 25 20 17 100 150 200 250 300 450 410 400 410 250 200 240