Demand rate, D = 1400 pounds = 1400/25 = 56 packages per month

Cost per package = 9*25 = $ 225

Monthly holding cost per package, H = 225*10%/12 = 1.875

Considering an ordering cost (S) of $ 19.95 per order, EOQ = SQRT(2DS/H)

= SQRT(2*56*19.95/1.875)

= 34.5 packages

The value of EOQ lot size = 34.5*225 = $ 7763 , which is greater than $ 250. Therefore, shipping is free on this lot size.

Since there is no fixed associated Hence, there is no need to order this lot size. Minimum possible lot size should be ordered to minimize the holding cost. However, a minimum order of $ 250 needs to be ordered to qualify for free shipping.

Minimum order size = 250/225 = 1.11 packages . Packages need to be in whole number. So a minimum of 2 packages need to be ordered each time.