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A company is selling 900 units of a certain product each year.
The fixed cost per order amounts to € 10.00.
The cost of holding one unit in stock can be calculated from:
-               its cost price, being € 25.00
-               the interest rate of 8% per annum
-               other cost for holding inventory of 12% of its cost price.

Applying those data into the formula Qo = (2*D*Co / Ci) will result in: