Question: The total cost function for the EOQ model is In a particular inventory situation, annual demand (D) is 2,000, ordering cost per order is (Co)

The total cost function for the EOQ model is

In a particular inventory situation, annual demand (D) is 2,000, ordering cost per order is (Co) $25, holding cost per unit per year (Cb) is $10, and purchase (material) cost per unit (C) is $40. Write the total cost function with these values. Take the derivative and find the quantity that minimizescost.

Ch + DC TC Co

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