The Purchasing Manager for Flying Disc has decided EOQ could be helpful for her on ordering a number of components that they use in operations. She provides you the following information on leather straps they use on their flying disc bags. Compute the economic order quantity (EOQ) and then the annual inventory holding cost and annual ordering cost. (6 points)

Annual requirements (D) = 50,000 units Order cost (Co) = $150 per order

Holding rate (I) = 15% Unit cost (C) = $100 per unit