A bookstore has an annual demand for 117,000 copies of best-selling book. It cos

Question

A bookstore has an annual demand for 117,000 copies of best-selling book. It costs $0.20 to store one copy for one year, and it costs $70 to place an order. Find the optimum number of copies per order.
A. 14,643 copies B. 8145 copies C. 9050 copies D. 20,236
Show work please! A bookstore has an annual demand for 117,000 copies of best-selling book. It costs $0.20 to store one copy for one year, and it costs $70 to place an order. Find the optimum number of copies per order.
A. 14,643 copies B. 8145 copies C. 9050 copies D. 20,236
Show work please!
A. 14,643 copies B. 8145 copies C. 9050 copies D. 20,236
Show work please!
Show work please!

Explanation / Answer

D = 100,000 copies
Storage cost (SC) = $0.20 per copy / per year
Ordering cost (OC) = $70
optimum number of orders = EOQ

EOQ = sqrt(2*D*OC/SC)

EOQ = sqrt(2*117,000*70/0.20) = 9049.86188

=9050 copies

answer)C

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