1. eBook

   Economic Order Quantity

   Ottis, Inc., uses 562,500 plastic housing units each year in its production of paper shredders. The cost of placing an order is $36. The cost of holding one unit of inventory for one year is $18. Currently, Ottis places 150 orders of 3,750 plastic housing units per year.

   Required:

   1. Compute the economic order quantity.

   fill in the blank 1 units

   2. Compute the ordering, carrying, and total costs for the EOQ.

   Ordering cost	$fill in the blank 2
   Carrying cost	fill in the blank 3
   Total cost	$fill in the blank 4

   3. How much money does using the EOQ policy save the company over the policy of purchasing 3,750 plastic housing units per order? Round your answer to the nearest dollar

   $fill in the blank 5