Question 1181263
Here's how to calculate the optimal order size using the Economic Order Quantity (EOQ) formula:

**Understanding EOQ**

The Economic Order Quantity (EOQ) is a model that calculates the optimal order quantity for inventory that minimizes total inventory costs (which include ordering costs and holding costs).

**Formula**

EOQ = √(2 * D * O / H)

Where:

* D = Annual demand (units)
* O = Ordering cost per order
* H = Holding cost per unit per year

**Calculation**

1. **Plug in the values:**
   * D = 600 units
   * O = Rs. 70.00
   * H = Rs. 8.40

   EOQ = √(2 * 600 * 70 / 8.40)

2. **Simplify:**
   EOQ = √(84000 / 8.40)
   EOQ = √10000
   EOQ = 100

**Answer**

The optimal recommended order size to minimize associated costs is 100 units.