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In this question,
A (Annual requirement ) = 400 *52 = 20800
O (ordering cost) = $ 600
C (carrying cost) = 100*18% = $ 18
1. EOQ = (2*A*O/C)^0.5
EOQ = (2*20800*600/18)^0.5
EOQ = 1177.5 ie 1178 Units Approx
2. Total annual cost = (2*A*O*C)^0.5
= (2*20800*600*18)^0.5
Total annual cost = $ 21196
3. Number of orders = Annual requirement / EOQ
= 20800 / 1178
= 17.65 Orders = 18 Orders (Approx)
4. Time between orders = 365 / 18 orders
= 20.3 days
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