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

  1. the change-over/order cost was $250
  2. the annual usage was 200
  3. The typical order size is 50
  4. Inventory holding cost is 2%
  5. 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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