Answer:
The Economic order quantity is 196.64 units.
Explanation:
Economic Order Quantity (EOQ): The Economic order quantity is that quantity which the firms has to produced by maintaining the minimum cost like carrying cost, ordering cost, etc.
The formula to compute EQO is shown below
= [tex]\sqrt{\frac{2\times \text{annual demand}\times \text{ordering cost per order}}{\text{carrying cost per unit\\ } }[/tex]
= [tex]\sqrt{\frac{2\times \text{6,000}\times \text{29}}{\text{9\\ } }[/tex]
= 196.64 units
Hence, the Economic order quantity is 196.64 units
