Chinoda (Pvt) Ltd is a retailer of beer barrels. The company has an annual demand of 30,000 barrels. The barrels are purchased for stock in lots of 5,000 and cost $12 each. Fresh supplies can be obtained immediately, ordering and transport costs amounting to $200 per order. The annual cost of holding one barrel in stock is estimated to be $1.20.

You are required to calculate:-

Ordering costs

Cost of holding stock

Total inventory costs

EOQ (Economic Order Quantity)

Total annual costs for the company