D = 18 units/week = 936 units/year

C = $60/unit

S = $45

H = 25% x $60 = $15

1. Total cost of 390-unit order = Holding cost + order cost

= $15 x 390/2 + 936/390 x $45 = $3,033
Total cost for 468-unit order = $3,600
 390-unit order would be better due to less total cost
2×D×S 2 × 936× 45
2. EOQ =
√ H
=
√ 15
No. of orders = D/Q = 12.48
= 75 units

12 orders
TBO = Q/D = 0.08 years = 29.25 days