Determine the Economic Order Quantity (EOQ) for a component with an annual demand of 20,000 units. The ordering cost per order is 100, and the carrying cost per unit per annum is 8.

While computing Economic Order Quantity (EOQ), the Cost of Insurance of stored material is included under:

The purchase price of an item of inventory is $25 per unit. In each three-month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20. What is the economic order quantity (EOQ) for the inventory item to the nearest whole unit?