Solution :
The optimal order quantity, EOQ =

EOQ =

= 115.47
The expected number of orders =


= 17.32
The daily demand = demand / number of working days

= 8.33
The time between the orders = EOQ / daily demand

= 13.86 days
ROP = ( Daily demand x lead time ) + safety stock

= 76.64
The annual holding cost =


= 207.85
The annual ordering cost =


= 207.85
So the total inventory cost = annual holding cost + annual ordering cost
= 207.85 + 207.85
= 415.7