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Inventory Management for workbooks: EOQ, holding costs

Please use the attached excel worksheet to answer the problem.

William Beville's computer training school, in Richmond, stocks 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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Demand D = 19, 500 units/year 
Ordering cost S ...

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Solution explains Inventory Management for workbooks: EOQ, holding costs, ordering costs

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