Question: Assume that all the basic EOQ model assumptions are satisfied. If the annual demand for a product is 1 , 0 0 0 units, and

Assume that all the basic EOQ model assumptions are satisfied.
If the annual demand for a product is 1,000 units, and each order consists of 50 units, how many orders need to be placed per year?
Given a setup or ordering cost of $10 per order, what is the total annual cost for placing orders?
With orders of 50 units each, what is the average inventory level?
At a holding cost of $0.50 per unit per year, what is the total annual cost of holding the inventory?
What is the total annual cost, combining both setup and holding costs, for this product?
Assume that all the basic EOQ model assumptions are satisfied. If

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