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 **Q _{o} = **

**√**

**(2*D*C**will result in:

_{o}/ C_{i})