S is the set$-$up cost per order, consisting also of the handling cost and the shipping cost. D is the demand

rate or the quantity that the company sells per day, and H is the holding cost for the inventory per year

per unit.

Take the example of a clothing business specializing in men's shirts. Each year, the business sells about

$1,000$ shirts. To hold a single shirt per year in the inventory, it costs the company $$3.$ The fixed cost of

ordering is estimated at $$2.$ Calculate the EOQ for the clothing business.

S $=$ $$2$

H $=$ $$3$

D $=1,000$