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Mark Achin sells 3 , 6 0 0 electric motors each year. The cost of these is $ 2 0 0 each, and demand is

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. At the moment Mark orders 200 units each time he places an order. He is now considering using EOQ to make inventory ordering decisions. What would the difference in total ordering cost be for the year?

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