49) In the basic EOQ model, if annual demand is 50 units, canying cost is $2 per unit per year, and ordering cost is $15. what is the EOQ? Answer: 2?.39 Diff: 2 Page Rel: T52 Main Heading: The Basic EOQ Model Key words: EOQ model. economic order quantity models A company produces item Y, and uses the basic EOQ model for managing its inventory. Lead time to obtain item Y is two weeks. Demand is normally distributed with a mean of 400 units per week and a standard deviation of 40 units per week. The desired service level is 98.5%. The ordering cost is $20, and carrying cost is 20% of the items cost, wt'Iich is 51:}