Final answer:
The Economic Order Quantity (EOQ) formula is used to determine the optimal order quantity that minimizes total inventory costs. The Total Cost (TC) formula calculates the total inventory costs associated with the EOQ. The provided data is needed to calculate the EOQ and TC for the given situation.
Step-by-step explanation:
The Economic Order Quantity (EOQ) is a formula used to determine the optimal order quantity that minimizes total inventory costs. It takes into account the annual holding cost rate and the order cost. The formula for EOQ is:
EOQ = sqrt((2 * D * S) / H)
Where:
- D represents the annual demand
- S represents the order cost per order
- H represents the annual holding cost rate
To calculate the Total Cost (TC), you need to find the total inventory costs associated with the EOQ. The formula for TC is:
TC = D * S + (Q/2) * H
However, without the specific values for annual demand, order cost per order, and annual holding cost rate, it is not possible to calculate the EOQ and TC. I would recommend using the provided formulas and inputting the relevant values to determine the optimal order quantity and total cost for the given situation.