Example:

Biotech.Co produces chemicals to sell to wholesalers. One of the raw material it buys is sodium nitrate which is purchased at the rate of $$22\mathrm{.}50$ per ton. Biotech's forecasts show a estimated requirement of $5,75,000$ tons of sodium nitrate for the coming year. The annual total carrying cost for this material is $40\%$ of acquisition cost and the ordering cost is $$595.$ What is the Most Economical Order Quantity?