Inventory models

The following data are for an inventory item in which the EOQ model applies:

Given: D = 10,000 units (annual demand)

R = P10 per unit

P = P500 per order

C = 25% 0f average inventory

Find: a. the number of orders per year

b. the economic order quantity (EOQ)

c. the amount in pesos per order

d. the number of days interval between orders

e. the total inventory costs