Problem:
XYZ Corp, Inc. is experiencing some inventory control problems. The manager currently orders 10,000 units four times each year to handle annual demand of 40,000 units. Each order costs $40 and each unit costs $1.25 to carry.
The manager maintains a safety stock of 200 units.
Required:
Question: Calculate the economic ordering quantity (EOQ).
Note: Please provide through step by step calculations.