Use the following information to answer the question below.
If annual sales volume in units = 20,000
OC = $100/order
CC = $150/unit
-Calculate the EOQ order size:

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula is √((2DS)/H), where D is the demand (20,000 units), S is the ordering cost ($100), and H is the holding cost per unit ($150). Plugging in these values gives EOQ = √((2*20000*100)/150) = √(4000000/150) = √26666.67 ≈ 163.

Use the Following Information to Answer the Question Below