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EOQ for Workbooks and Annual Holding Costs

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12.5
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?

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The expert calculates EOQ for workbooks and annual holding costs.

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