Question: Define the EOQ and explain the characteristics exhibited by the system for which the simple EOQ model is applicable. Calculate the EOQ for the company

Define the EOQ and explain the characteristics exhibited by the system for which the simple EOQ model is applicable.
Calculate the EOQ for the company in the following example.
The Fine Art Picture Gallery imports and distributes picture frames. The forecasted annual demand for its standard 30 cm x 45 cm picture frame is 8,000 frames. The order processing cost per order is $15.00, and the inventory holding cost is $30.00/item/year. How many picture frames should the Fine Art Picture Gallery order from its supplier in one shipment? Show your calculations and calculate your answer to two decimal places.

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