Jie da Ara x + POwith%20Backordering%20%20EPO%20Model.pdf 1. Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. The annual demand is 10000 units and the ordering cost is $10. The holding cost per unit per year is $1. The managers allow back-ordering in case of shortages, however back-ordering a single unit through the whole year costs $4. . The unit price of the needles is $2. Sharp, Inc., works for 250 days in a year. Lect. Ismail BASOGLU, Ph.D. EOG WITH BACK ORDERING & EPO MODEL EOQ with Back-ordering Economic Production Quantity (EPO) Model- The Model Description Optimal inventory Plan EOQ Model with Back-ordering: Example (cont'd) a) Calculate the maximum allowed back-ordering quantity and the economic order quantity. b) What is the number of orders per year? c) What is the economic order cycle