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The Equation Method for Computing Economic Order Quantity

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For each of the following independent cases, use the equation method to compute the economic order
quantity.
Case A Case B Case C
Annual requirement (in units) ................................................ 13,230 1,681 560
Cost per order ..........................................................................$250 $40 $10
Annual holding cost per unit ....................................................... 6 20 7

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Solution Summary

This solution calculates the economic order quantity for case A, B, and C. All calculations are provided.

Solution Preview

This is calculated with a square root function on your calculator. I will use the abbreviation SR to show ...

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