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316 i EXCEL #3 a. The new optimal order quantity [EOQ figurel b. The new annual relevant ordering costs C. The new annual relevant carrying

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316 i EXCEL #3 a. The new optimal order quantity [EOQ figurel b. The new annual relevant ordering costs C. The new annual relevant carrying costs d. The new total annual relevant inventory costs EOQ IN A RETAIL SETTING DATA: Annual demand for X Corp 380,000 units Order costs [per order] $57 Annual carrying costs per unit $12 Required D: Management estimates it will cost $2,150 to train its employees to use the new web-based ordering system. Will the company recoup these training costs within the first year of adopting the new system? Respond Yes or No and prepare an analysis reflecting the financial implications of your decision Required A: Management is exploring how ordering and carrying costs vary with the order quantity. Complete the following table by applying the EOQ model. SITUATIONS A B C D E Annual demand[units] Cost per orderlabove] Carrying cost per unit Order quantity [# units per order] 380K 380K 380K38OK 38OK $57 $57 $57 $57 $57 $12 $12 $12 $12 $12 760 1,000 1,900 3,800, 4,750 Number of orders planned per year?? Annual relevant ordering costs Annual relevant carrying costs Total annual relevant inventory costs???? Required B: Identify the optimal order quantity [EOQ figure] from the table above Required C: Management is considering a web-based ordering system which will reduce planned order costs to $30 per order. Given this proposed change, compute the following

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