EXERCISE EOQ Model The Paint Store stocks paint in its warehouse and sells it online on its Internet Web site. The store stocks several brands of paint; however, its biggest seller is Sharman-Wilson Ironcoat paint. The company wants to determine the optimal order size and total inventory cost for rencoat paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of $0.75 per gallon and an ordering cost of $150 per order. EOQ MODEL Optimal Quantity Qopt = 2 COD Total Annual Inventory Cost V TC = COD + CcQ ont. 2 Qopt Where: Co = Ordering Cost D = Demand Cc = Carrying Cost