Question: A store has h = $2.25 per unit per year, S = $275. Its annual demand for a product is 56000 units. (a) Currently the

A store has h = $2.25 per unit per year, S = $275. Its annual demand for a product is 56000 units. (a) Currently the manager uses an order amount, Q = 2000 units. Determine HC, SC and TC. On average how many orders does he place annually? (b) How many orders would the manager place if he/she used EOQ? What would be the cost savings using EOQ?

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