Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 800 units. His cost to carry one unit is $95 per year per unit, and he has estimated that each order costs $24 to place. Using the EOQ model, how many should Ray order each time? (Round your answer to the nearest whole number.)

Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 800 units. His cost to carry one unit is $95 per year per unit, and he has estimated that each order costs $24 to place. Using the EOQ model, how many should Ray order each time? (Round your answer to the nearest whole number.)

Solution

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