Question

A certain type of computer costs $ 1,145 and the annual holding cost is 25% of the value of the item. Annual demand is 10,000
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Answer #1

Holding cost =25% of price

=25/100*1145

= 286.25

EOQ = √ 2*D*S /H

= √2 * 10000*111/ 286.25

= √77554.48

=278.48

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