1. eBook

   Ordering and Carrying Costs

   Ottis, Inc., uses 773,500 plastic housing units each year in its production of paper shredders. The cost of placing an order is $35. The cost of holding one unit of inventory for one year is $19. Currently, Ottis places 170 orders of 4,550 plastic housing units per year.

   Required:

   1. Compute the annual ordering cost.

   $fill in the blank 1

   2. Compute the annual carrying cost.

   $fill in the blank 2

   3. Compute the cost of Ottiss current inventory policy.

   $fill in the blank 3

   Is this the minimum cost?

   YesNoNo