Question: Economic Order Quantity [ EOQ ] . You have been promoted as the Purchasing Manager at Jumbo Wholesalers. You have picked up the following information

Economic Order Quantity [EOQ].
You have been promoted as the Purchasing Manager at Jumbo Wholesalers.
You have picked up the following information from the Purchasing File :
3000 of a particular type of school bag is purchased annually at R60 per bag.
These bags are sold at R99 each. The cost of placing a single order amounts to
R12. The inventory holding cost amounts to R5 per bag.
Calculate the Economic Order Quantity for this inventory

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