Service Management 7th Edition by James Fitzsimmons, Mona Fitzsimmons

Exercise 27

Annual demand for the notebook binders that Ted's Stationery Shop sells is 10,000 units. Ted operates his business on a 200-workday year. The unit cost of a binder is $2, and the cost of placing an order with his supplier is $0.40. The cost of carrying a binder in stock for one year is 10 percent of its value
a. What should the EOQ be?
b. How many orders are placed per year?
c. How many working days elapse between reorders?