Joes camera shop has a favourite model that has annual, Operation Management

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Joes camera shop has a favourite model that has annual

Joe's Camera shop has a favourite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory costs are $20. Assume the store is open 350 days per year.

a. What is the optimal order size, EOQ?

b. What is the optimal number of orders per year?

c. What is the annual total cost (holding + ordering)?

d. What is the importance of knowing this information?

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