Explanation:

Economic Order Quantity (EOQ) is the quantity to be ordered at one time to minimize the overall variable cost i.e. total ordering cost and carrying cost.

It is calculated as:

√ 2 (x) C (x) O/ I

Where, C= Annual Consumption

O= Ordering cost per order

I= Inventory Carrying Cost per unit per annum (% on Purchase price per unit)

In given problem, EOQ= √ 2 (x) 6000 (x) 60/2 = 600 units