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Razorback Commodities Inc. distributes office supplies to universities across the United States. Its highest selling item is the 5 0 0 Count Basic Copy Paper.

Razorback Commodities Inc. distributes office supplies to universities across the United States. Its highest selling item is the 500 Count Basic Copy Paper. The company is interested in determining the right size of order it should place with its supplier. Given the following information, calculate the Economic Order Quantity (EOQ) for the 500 Count Basic Copy Paper (Please round up to the nearest whole number):
Annual rate of demand (R)=10,000 units
Order and set up costs (A)= $50 per order
The cost of one unit of copy paper (V)= $25
The carrying cost per dollar value in percent (W)=15%
The EOQ is
a.
516 units
b.
652 units
c.
425 units
d.
725 units

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