Answer:
The 22.37 unit should be used in ordering ray order each time.
Explanation:
Economic Order Quantity (EOQ) : The EQO is that quantity which the firm has to be produced by minimizing the ordering cost per order and carrying cost per unit
The formula to compute EQO is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost per order}}{\text{Carrying cost per unit}}}[/tex]
= [tex]\sqrt{\frac{2\times \text{1000}\times \text{25}}{\text{100}}}[/tex]
= 22.37 units
Thus, the EOQ is 22.37 units.
Hence, the 22.37 unit should be used in ordering ray order each time.