Calculating Ordering Costs, carrying cost and total inventory related cost Mall-o-Cars sells a number of automative brands and provides service after the sale for those brands. Part X7B is used to repain water pumps. Each year, 10,000 units of Part X7B are used; they are currently purchased from external suppliers in lots of 1,000 units. It costs the company P25 to place the order and carrying cost is P2 per part per year 1 Number of orders Annual number of units used Number of units in an order 2 Total ordering cost Number of orders Cost per order 3 Total carrying cost 10,000 1000 10 orders per year 10 P 25.00 P 250.00 Average number of units Cost of carrying one unit 4 Total Inventory related cost Total ordering cost Total carrying cost (1,000/2) x P2 P1,000.00 P 250.00 P1,000.00 P1.250.00 EOQ assignment Research for the EOQ formula and refer to data in Mall-O-Cars 1. What is the EOQ for Part X7B? 2. How many orders per year for Part X7B will Mall-O-Cars place under the EOQ policy? 3. What is the total annual ordering cost for a year under EOQ policy? 4. What is the total annual carrying cost per year under the EOQ policy? 5. What is the total annual inventory related cost under the EOQ policy?