Answer:
Economic order quantity (EOQ)= 10 units
Step-by-step explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
In this case:
Demand= 60 units
S= $5
H= 20*0.3= $6
Economic order quantity (EOQ)= √[(2*60*5) / 6]
Economic order quantity (EOQ)= 10 units