What would be the annual order​ cost? 

​$enter your response here 

​(round *your response to two decimal*​ places).

The annual order cost is calculated using the formula:

\[
\text{Annual Order Cost} = \text{Number of Orders} \times \text{Order Cost per Order}
\]

We previously found that the number of orders is approximately 9.72, and the order cost per order is $18.25.

\[
\text{Annual Order Cost} = 9.72 \times 18.25 \approx 177.87
\]

**So, the annual order cost is $177.87.**

Would you like more details or have any questions?

Here are five related questions:
1. How would an increase in order cost per order affect the total annual cost?
2. What strategies can be used to reduce the annual order cost?
3. How does the frequency of orders affect the overall cost?
4. What is the relationship between EOQ and order cost?
5. How can order cost reductions influence inventory management practices?

**Tip:** Always ensure that you account for both order and holding costs when calculating EOQ to optimize total inventory costs.

Discover how to calculate the annual order cost using the formula: Annual Order Cost = Number of Orders × Order Cost per Order. Detailed solution provided with specific data points. Suitable for professionals needing to estimate annual costs.

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