# Financial Problem: Determining the Firm's Economic Order Quantity

Tool Mart sells 1400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90, what is the firm's EOQ?

(Q*= Sq root of 2(S)(D)/C)Also: (C = Inventory carrying cost X cost of frames)

https://brainmass.com/math/consumer-mathematics/financial-problem-determining-firms-economic-order-quantity-30587

#### Solution Preview

Economic Order Quantity Formula:

EOQ = Square Root(2S*D/C) ...

#### Solution Summary

EOQ is determined. The response received a rating of "5" from the student who posted the question.

$2.19