# 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 Preview

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

#### Solution Summary

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

$2.49