Economic order quantity for retailer, ordering and carrying costs. Office Emporium

(OE) is deciding the purchase order quantity for a new modem product. Annual demand is 24,000 units. Ordering costs per purchase order are $144. Carrying costs per modem unit are $12 per year. OE uses an economic-order-quantity model in its purchasing INVENT jusein^time^and decisions. OE is open 360 days a year.

Required 1. Calculate OE’s EOQ for modems.
2. Calculate OE’s total ordering and carrying costs.
3. Assume that demand is known with certainty and the purchasing lead time is five days.
Calculate OE’s reorder point for modems.