If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be

The economic order quantity (EOQ) is the order quantity that minimizes the total cost of ordering and carrying inventory. It is calculated as follows:

$$EOQ = \sqrt{\frac{2DC}{h}}$$

where:

• $D$ is the annual demand,
• $C$ is the ordering cost per order,
• $h$ is the carrying cost per unit per year.

In this case, we have:

• $D = 25000$ units
• $C = $210
• $h = $25

Substituting these values into the EOQ formula, we get:

$$EOQ = \sqrt{\frac{2 \times 25000 \times 210}{25}} = 678.46$$

Since the EOQ must be a whole number, we round this up to 679 packages.

Therefore, the economic order quantity for this product is 679 packages.

The other options are incorrect because they do not minimize the total cost of ordering and carrying inventory.