Small Business Management 6th Edition by Timothy Hatten

Exercise 8

Assume that you are the owner of the sporting goods store used in the example of EOQ inventory control on page 331. You typically sell 14,500 sweatshirts per year. Your ordering costs are $10 per order. Holding costs are $0.60 per sweatshirt per year. What is your EOQ for sweatshirts? How many sweatshirt orders would you place per year?