Question: Problem 4 (6 points): A company decides to establish an EOQ for an item. The annual demand is 300,000 units. The ordering costs are $50

Problem 4 (6 points):

A company decides to establish an EOQ for an item. The annual demand is 300,000 units. The ordering costs are $50 per order, and inventory-carrying costs are $4 per unit per year. Calculate the following:

(a). The EOQ in units (3 points)

(b). What is the annual total cost (3 Points)

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