You are working for a warehouse and distribution company who supplies irrigation products to
retailers across the state. A review of 25mm blue-line hosing is currently being undertaken to
determine the most cost effective way of ordering the product. The item ordered in 100m rolls
at a cost of $100 per roll. The cost of placing the order is $15 and the annual cost of carrying the
item is $1.50. The warehouse uses 2,600 rolls annually and sales are constant all year round. The
lead time for an order is 6 weeks and the safety stock level has been set at 30 rolls.
Calculate the EOQ of the 25mm blue line hosing?