14.

18 Develop an EOQ solution and calculate total relevant costs for the data in
the preceding table

Economic Ordering Quantity = EOQ = √ ❑

330
Reorder point = Demand during lead time = ≈ 27.5 units=28units
12

We have: EOQ = 57; Demand during period = 330

=>Setup cost = 5*$150 = $750
=>Holding cost = $2.5 * 364 = $910
🡪Total cost = Setup cost + Holding cost = 750 + 910 = $1660