Using the Data Below, Find the Economic Order Quantity (EOQ)

Essay

Using the data below, find the economic order quantity (EOQ), the total annual cost associated with the economic order quantity, and the reorder point.
$\begin{array}{|l|l|}\hline\text { Annual Demand: } & 15,000 \text { units } \\\hline \text { Weeks Operating: } & 52 \text { weeks/year } \\\hline \text { Ordering Costs: } & \$ 60 / \text { order } \\\hline \text { Holding Costs: } & \$ 7 / \text { unit/year } \\\hline \text { Lead Time: } & 5 \text { weeks } \\\hline\end{array}$