This English question involves literary analysis, grammar, or writing skills. The detailed response below provides a well-structured answer with supporting evidence and clear explanations.
ScanSolve AI Answer
To calculate the Economic Order Quantity (EOQ), we will use the Wilson formula. Given values: Unit price = 20,000 Average monthly consumption = 50,000 units Cost of order (S) = 40,000 Holding cost per unit = 15% of unit purchase price Lead time = 3-5 weeks (not needed for EOQ calculation) Unit security margin = 75% (not needed for EOQ calculation) The EOQ formula is: EOQ = sqrt((2DS)/(H)) Where: D = Annual demand S = Cost per order H = Annual holding cost per unit Step 1: Calculate the annual demand (D). The average monthly consumption is 50,000 units. D = 50\,000 units/month × 12 months/year = 600\,000 units/year Step 2: Calculate the annual holding cost per unit (H). The holding cost is 15% of the unit purchase price (20,000). H = 0.15 × 20\,000 = 3\,000 per unit per year Step 3: Apply the EOQ formula. Substitute the values of D, S, and H into the formula. EOQ = sqrt((2 × 600\,000 × 40\,000)/(3\,000)) EOQ = sqrt((48\,000\,000\,000)/(3\,000)) EOQ = sqrt(16\,000\,000) EOQ = 4\,000 The Economic Order Quantity is 4,000 units. EOQ = 4\,000 units That's 2 down. 3 left today — send the next one.