Q: D = 1200/yr, S = ₹50/order, H = ₹2/unit/yr. Find EOQ and total cost. Q* = √(2×1200×50/2) = √60000 ≈ 245 units. Orders/yr: 1200/245 ≈ 4.9. TC = (D/Q)S+(Q/2)H = 4.9(50)+122.5(2) = 245+245 = ₹490. (At optimum: ordering = holding!) Cycle: 365/4.9 ≈ 74 days!