EOQ for a not-for-profit organization Dementia County's demand for computer paper is 7,000 cartons per year. The cost of each carton is $70 and carrying cost is $3.50 per carton. A price increase of $10 per carton has recently been announced that will take effect next year. The county budget for next year also includes an increase in carrying costs to $6.40 per carton. In addition, a study of the demand for computer printouts indicates that the county will use 7,200 cartons of paper next year. It costs $10 to place an order for paper and the county usually orders 300 cartons when it has 250 cartons left on hand. Lead time is 5 days. The maximum number of cartons used in any one day is 35. The county operates its computer 250 days per year.

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REQUIRED a. Compute the economic order quantity for the current budget year. b. Determine the total cost of inventory at the EOQ. c. Determine the reorder point, safety stock, and reorder point with safety stock. d. Determine the total cost of inventory at the EOQ with safety stock. e. Determine the county's safety stock and the cost of inventory with the present ordering policy. f. Determine the EOQ for the next budget year. g. Determine the total cost of inventory at the EOQ with safety stock.