Fiber Technology, Inc., manufactures glass fibers used in the communications industry. The company's materials and parts manager is currently revising the inventory policy for XL-20, one of the chemicals used in the production process. The chemical is purchased in 10-pound canisters for $108 each. The firm uses 7,200 canisters per year. The controller estimates that it costs $163 to place and receive a typical order of XL-20. The annual cost of storing XL-20 is $5.30 per canister.

Question 1. Use the EOQ formula to determine the optimal order quantity. Round to the nearest whole number.