To find the optimal order quantity using the Economic Order Quantity (EOQ) formula in a fixed-order quantity model, we can use the following formula:

$EOQ = \sqrt{\frac{{2DS}}{H}}$

Where:

• $D$ = Annual demand (35,000 units)
• $S$ = Ordering cost per order ($50)
• $H$ = Holding cost per unit per year ($0.65)

Plugging in the values:

$EOQ = \sqrt{\frac{{2 \times 35000 \times 50}}{0.65}} = \sqrt{\frac{{3,500,000}}{0.65}} = \sqrt{5,384,615.38}$

$EOQ \approx 2,320$

Conclusion:

The optimal order quantity is 2,320.

Do you need further details or have any questions?

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Here are 5 related questions to expand on this topic:

1. How does a higher ordering cost affect the EOQ?
2. What happens to EOQ if the holding cost per unit increases?
3. Can EOQ be applied in a system where demand fluctuates significantly?
4. How does a change in annual demand influence EOQ?
5. What is the impact of lead time on EOQ?

Tip: Reducing either ordering or holding costs can lower the EOQ, which decreases total inventory-related costs.