Given R = 3000, p = 7,1 = 20% c_{3} = 150.

(Shortages are not given use EOQ model 1)

1. EOQ : Q° = \(
\sqrt\frac{2C_3R}{C_1}\)

C_{1 }= p_{1} = 7 × \(\frac{20}{100}\)

Q° = \(
\sqrt\frac{2\times 150 \times 300}{1.4}\)

2. n° =\(\frac{2R}{Q°}\) = \(\frac{300}{801.78}\) = 3.4 orders

3. C(Q°) = \(
\sqrt{2\times 150 \times 300\times1.4}\)

= Rs. 1122.50