Economic Order Quantity $($EOQ$)$ is a method used to calculate the ideal quantity to order. The underlying concepts of EOQ is the balance between ordering cost and holding cost.

After watching the video and using the data points given below, perform two calculations:

A $=$ annual demand $=20,000$

Cp $=$ Cost of an order which includes preparing and following up the order $=$ $$100\mathrm{.}00$

Ch $=$ Unit inventory cost per year or item cost $($P$)$ $$100$ times annual carrying cost rate $($r$)(25\%)$