Question: In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then the total

In the basic EOQ model, if D = 5,000 per year, S

In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then the total cost of the EOQ ordering policy is? 10 EOQ = Sq root of [(2D*S)/H] D = annual demand in units S = cost of placing 1 order; H = cost of holding 1 unit of that item in inventory for 1 year and TC= # of orders/yr * S + Avg. Inventory * H. Average inventory = (Beginning Inv + Ending Inv)/2; # of Orders/yr = D/order ty $5000.00 $1050.00 $1200.00 $1000.00

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