In the basic EOQ model, if monthly demand is 2500 units, unit holding cost is $10 per unit per month, and each order costs us $200, what is the economic order quantity, assuming 9 month per year and a purchase cost of $10 per unit?

Q = E O Q = ( 2 D S ) H

D: Annual Demand, S: Unit Setup/Ordering Cost, and H: Annual Unit Holding Cost

Group of answer choices

302.12

310.12

325.14

316.23

312.15

Using the same data as in Question 4, namely monthly demand is 2500 units, unit holding cost is $10 per unit per month, and each order costs us $200, assuming 9 month per year and a purchase cost of $10 per unit, and additionally assuming that there are 250 days per year, what is the optimal number of days between each order?

O p t i m a l N u m b e r o f O r d e r s = D Q

O p t i m a l n u m b e r o f d a y s b e t w e e n e a c h o r d e r = N u m b e r o f D a y s D u r i n g t h e Y e a r O p t i m a l N u m b e r o f O r d e r s

Group of answer choices

2.12

3.51

4.75

5.50

6.22