Question: 1. Given the information below, what is the EOQ? Annual Demand =1,000 units Cost to place an order = $10 Holding cost per unit per

1. Given the information below, what is the EOQ? Annual Demand =1,000 units Cost to place an order = $10 Holding cost per unit per year = $2.50

2. A firm purchases 10,000 transistors each year as components in minicomputers. The unit cost of each transistor is $5, and the cost of holding one transistor in inventory for a year is $2. Ordering cost is $25 per order. Using EOQ, what is the optimal order quantity? What is the expected number of orders placed each year?

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