2. The EOQ formula is given here: EOQ 2 x Ordering Cost x Demand Holding Cost and Total Cost (Te)is expressed as: Tew Derand & Ordering Cost + (19) & Order Quantity x Holding Cost + Total Purchase cost Onder Quantity A Clinical laboratory uses 250 gallons of a certain solvent per year at a purchase price of $2.50 per gallon. The cost associated with placing an order is $8 and withholding stock (on an annual basis) is 20 percent of the purchase cost per unit. Assuming that the basic conditions of the EOQ model apply, compute: a) What is the most economic order quantity? (10 marks) b) What is the total cost? (10 marks]