Answer:
EOQ 20,316 kits per order
order per year: 9.49
Explanation:
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
D = annual demand = 18 jobs per day x 268 days per year x 40 kit per job = 192,960
S= setup cost = ordering cost 1,250
H= Holding Cost = $425 cost of 40 kits --> 10.625 per kit at 11% = 1.17
[tex]Q_{opt} = \sqrt{\frac{2(192,960)(1,250)}{1.17}}[/tex]
EOQ = 20316.21675 = 20,316 kits
192,960 / 20,316 = 9.497831331