Item X

Annual Demand $2500$ A EOQ

Preparation cost $500$ Cp

Unit cost $250$ v

Carrying cost rate $0\mathrm{.}3$ Ct Annual carrying cost Annual Prep cost Total annual cost

If item X is ordered in lot sizes of $100$ units

$($instead of the EOQ$)$ what would the

total annual costs be$?$

If item X is ordered in lot sizes equal to the TBO weeks

EOQ, what will be the Time Between Orders?

Assume $50$ weeks per year $($for simplicity$)$