inventory costs (order costs and holding costs)

Implement the Economic Order Quantity model

Use the Newsvendor model

William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:

Demand D	19,000 units/year
Ordering cost S	$23/order
Holding cost (i c )	$4/unit/year

a) The EOQ for the workbooks is (round your response to the nearest whole number).

b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).

c) What are the annual ordering costs? $ (round your response to the nearest whole number).