Answer:
222
Explanation:
Economic Order Quantity = √[(2XCₒXD)/Cₕ]
Where:
Cₕ = cost of holding a unit of inventory for a year
Cₒ = cost of placing an order
D = annual demand
Ordering cost, Cₒ= $166
Annual demand, D= 4,153
Inventory holding cost, per item per year, Cₕ = $28
Economic Order Quantity = √[(2X166X4153)/28]
=√[1378796/28]
=√49242.71
=221.9
=222
The Annual Number of Orders to be placed is 222.
