Question: In the basic EOQ model (under constant demand), annual demand is 500 and the annual holding cost is $10/unit. The ordering cost is $25 per

In the basic EOQ model (under constant demand), annual demand is 500 and the annual holding cost is $10/unit. The ordering cost is $25 per order. Assume lead time is 0. It can be shown that the optimal order quantity (EOQ) is 50 units (per order). Answer the following questions based on this optimal order quantity.

How many orders are there in a year (on average)?

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