MBHE currently applies the Economic Order Quantity $($EOQ$)$ model as an inventory management tool. Among others,

MBHE stocks a certain switch connector at its central warehouse for supplying field service offices. The annual demand

for these connectors stands at $60000$ units. MBHE estimates the annual holding cost for this item of inventory to be R$50$

per unit and the cost to place and process an order from the supplier amounts to R$150.$ It operates $300$ days per year and

the lead time to receive an order from the supplier is two full working days.