Discount Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers in Atlanta. The annual demand is 2,000 lamps, the ordering cost per order is $30, and the annual carrying cost per lamp is $12.
What is the EOQ?

Q&A Education