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EOQ Model

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Computer training schools, stock workbooks with the following characteristics:

Demand D = 19,500 units/year
Ordering cost S = $25/order
Holding cost H = $4/unit/year

a) Calculate the EOQ for the workbooks?
b) What are the annual holding costs for the workbooks?
c) What are the annual ordering costs?

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Solution Summary

The solution discusses computer training schools and stock workbooks and determines the EOQ.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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