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A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and the holding cost is $0.6 on an annual basis.

A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and the holding cost is $0.6 on an annual basis. Please compute the following using the EOQ model.

a. The economic order quantity based on EOQ model?

b. The total cost of ordering and carrying.

c. Suppose the current order size is 200. What additional annual cost is the company incurring by staying with the order size 200.

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