Answer:
the economic order quantity is 18 units
Explanation:
The computation of the economic order quantity is as follows
Economic order quantity is
[tex]= \sqrt{\frac{2 \times annual\ demand \times ordering\ cost}{carying\ cost} } \\\\= \sqrt{\frac{2\times 1,215\times \$10}{\$75} }[/tex]
= 18 units
hence, the economic order quantity is 18 units
We simply applied the above formula so that the correct value could come
And, the same is to be considered
