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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

Mark Achin sells
3
,
6
0
0
electric motors each year. The cost of these is $
2
0
0
each, and demand is constant throughout the year. The cost of placing an order is $
4
0
,
while the holding cost is $
2
0
per unit per year. There are
3
6
0
working days per year and the lead
-
time is
5
days. However an inventory analysis suggested using E
O
Q
.
How much would Mark save if he uses EOQ?

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