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QUESTION 26 An large auto repair shop has been purchasing windshields for their cars at the rate of 250 windshields per order
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Answer #1

Annual demand or D =?

Given :

Economic order quantity = 250 units

Setup cost or S = $271

Holding cost or h = $29

EOQ = square root of 2DS/h

250 = sqrt of 2× D× 271/29

Squaring both sides

62500 = 2×D× 271/29

D= 62500×29/(2×271) = 3344.09 ~ 3344 units

annual demand = 3,344 units

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