Question: Question 5 In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then

Question 5 In the basic EOQ model, if D = 5,000 per year, S = $100, and H = $1 per unit per year, then the total cost of the EOQ ordering policy is? EOQ - Sq root of [(2D*SYH] D-annual demand in units SE cost of placing 1 order, H-cost of holding 1 unit of that item in inventory for 1 year and TC=# of orders/yr $ + Avg. Inventory * H. Average inventory = (Beginning Inv + Ending Inv)/2; # of Orders/yr = D/order aty $1200.00 $1050.00 O $5000.00 $1000.00

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