B A 1 EOQ Calculation 2 3 Annual requirement in units (R) 4 Setup cost (S) 5 Holding rate (k) 6 Unit Cost (C) 7 Order lead time (LT, days) 8 Number of days per year 9 10 EOQ 5,500 $ 150 15% $11 7 360 12 Annual purchase cost 13 Annual holding cost 14 Annual order cost 15 Total inventory cost 16 Reorder point (ROP, days) 17 Number of orders per year 18 Time between orders (days) 19 20 21 22 23