Practice problem

Radical Equation Word Problems - Examples & Practice

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Contributors

Alex Federspiel
Ruiran Xun
Anusha Rahman

Industrial engineers use the Economic Order Quantity equation $EOQ=\sqrt{\dfrac{2D_aC_{su}}{C_{h}}}$ to figure out the optimal quantity of a product to make to minimize the cost for the company. $D_a$ is the amount of product that's expected to be used in a year. $C_{su}$ is the cost of setup for the product. Finally, $C_h$ is the cost of storing the product.

What's the optimal quantity to produce if the annual demand is $150000$ parts, the cost to setup the equipment is $\$5$ , and the cost to hold onto the product is $\$4$ ? (Round to the nearest integer.)