Question: D = Annual demand = 12,500 units S = Ordering cost per order = $100 H = Holding cost per unit = 20% of product

D = Annual demand = 12,500 units S = Ordering cost per order = $100 H = Holding cost per unit = 20% of product cost = 0.20 * $50 = $10 Plugging in the values: EOQ = sqrt((2 * 12,500 * 100) / 10) = sqr

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