Question: A store manager want to use the EOQ model to determine he optimal order quantity for a popular product. She has summarized the following data:

A store manager want to use the EOQ model to determine he optimal order quantity for a popular product. She has summarized the following data:
Demand =500 units/year
Order cost = $40/order
Holding cost rate =20%
Purchase cost per unit = $35
Provide your answer to each of the following and SHOW your work for each answer.
What is the (a) EOQ and its associated (b) annual ordering and (c) annual holding cost?

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