Answer:
Step-by-step explanation:
Demand = 19,500 units per year (D)
Ordering cost = $25 per order (O)
Holding cost = $4 per unit per year (C)
a) 

= 
= 
= 493.71044 ≈ 494
b) Annual holding cost = 
= 
= 4 × 247
= 988
c) Annual ordering cost = 
= 
= 25 × 39.47
= 986.75
AOQ = 494
Annual holding cost = 988
Annual ordering cost = 986.75
Answer:
-6
Step-by-step explanation: