1. If the order quantity is increased to 1000 units, recalculate and compare the results.
2. A company decides to establish an EOQ for an item. The annual demand is 400,000
units, each costing $9, ordering costs are $35 per order, and inventory carrying costs
are 22%. Calculate the following:
a. The EOQ in units.
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost.
b. Number of orders per year = 106
c. Annual cost of ordering = $3723
Annual cost of carrying = $3723
Annual total cost = $7446