Question: Determine the EOQ (economic order quantity) if: SCROLL DOWN the change-over/order cost was $250 the annual usage was 200 The typical order size is 50

Determine the EOQ (economic order quantity) if: SCROLL DOWN

the change-over/order cost was $250

the annual usage was 200

The typical order size is 50

Inventory holding cost is 2%

Each part has a cost of $75

Textbook Formula: Q0 = EOQ

S = Order cost per order

D = Annual demand in units

H = Total Inventory holding cost (part cost X holding %)

C= Cost of part

EOQ = Square root of (2SD/H)

A. 150 B. 141.42 C. 207 D. 258.2 E. None of the above answers are right

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