Question: A = Annual demand = 5 0 0 disk drives per year. N = Number of working days in a years at Applied Tech =

A = Annual demand =500 disk drives per year.
N = Number of working days in a years at Applied Tech =250 days per year
H = Holding Cost per year for each disk drive = $10/drive/year
S = Ordering Cost per order = $1
Based on the information given above, The optimal order quantity, as given by Q*(also called the EOQ) is equal to

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