Question
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
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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
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
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
