William Beville's computer training school, in Richmond stocks workbooks with the following characteristics:
Demand D=19500 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?
The expert calculates EOQ for workbooks and annual holding costs.