Question: Economic Order Quantity ( EOQ ) Calculate the EOQ: i . e . , the optimal order size, total orders required during a year, total

Economic Order Quantity

(

EOQ

)

Calculate the EOQ: i

.

.,

the optimal order size, total orders required during a year, total carrying cost, and total ordering cost for the year. Use the data below for your calculations:

Smith's Ltd

.

is engaged in the sale of soccer balls. Smith's cost per order is $

400,

and its carrying cost per unit per annum is $

10 .

The annual demand for the company's product is

20, 000

units.

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