Answer:
economic order quantity = 19 units
Explanation:
given data
Annual Demand = 850 units
Cost of carrying = $65 per unit
Ordering Cost = $14
solution
we get here economic order quantity that is
economic order quantity = [tex]\sqrt{\frac{2 * Annual Demand *Ordering Cost}{ Cost of carrying}}[/tex] .....................1
put here value we get
economic order quantity = [tex]\sqrt{\frac{2*850*14}{65}}[/tex]
economic order quantity = 19.13514
economic order quantity = 19 units
