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,...


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






May 24, 2022
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