Question: Annual Demand = 2 0 0 , 0 0 0 The order cost = $ 1 0 0 Annual holding rate = 2 5 %

Annual Demand
=
2
0
0
,
0
0
0
The order cost
=
$
1
0
0
Annual holding rate
=
2
5
%
Price varies depending on the order quantity per the following schedule:
Orders between
1
to
5
0
,
0
0
0
units cost $
1
1
Orders of
5
0
,
0
0
1
to
1
5
0
,
0
0
0
cost $
1
0
.
7
5
Orders greater than
1
5
0
,
0
0
0
cost $
1
0
.
5
0Calculate the EOQ at a cost of $10.50. Round order quantities to the nearest whole number.

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