ECONOMIC ORDER QUANTITY (EOQ) ANALYSIS OF INVENTORY INSTRUCTIONS FOR EVALUATION OF ECONOMIC ORDER QUANTITY (EOQ): Global Manufacturing, Inc. wants to reevaluate their inventory policy and determine the economic order quantity (EOQ) for the firm's current inventory situation. The information you will need to evaluate the firm's current inventory procedure is presented on this worksheet. CALCULATION FORMULA: See an explanation of this formula in your textbook on page 866: Q* = vOX 2TXF CC SAMPLE PRACTICE PROBLEM: This problem is similar to Problem 28-12. HELPS Refer back to your own spreadsheet for Problem 28.12 Alto do the file named 00 SAMPLE COMPANY EOQ CALCULATIONS & ANALYSIS por provided to help you setu var red et for mese EOQ calculations Global Manufacturing, Inc. currently begins each sales cycle with 294,900 units in stock. This stock is depleted at the end of each sales cycle and then reordered. The firm currently places 14 orders per year The carrying cost per unit is $2.009 per year and the fixed order cost is $13,850 per order. Assuming there is no shortage cost for this firm. The average cost of each unit of inventory is $58.17. units DATA INPUT Beginning inventory = 294,900 Ending inventory - 0 units Orders per year = 14 orders Carrying cost / unit = $2.009 per year Fixed order cost = $13,850 per order Average Inventory cost per unit $58.17 per unit NOTE: Cells shaded in YELLOW are the cells you must provide the calculations or analysis. (a) What is the total carrying cost? (Round to the nearest whole dollar. (e.g. (b) What is the restocking cost? (Round to the nearest whole dollar. (e.g.. (c) What is the total cost of current inventory policy? (Round to the nearest whole dollar. (e.g., 1,234)) (d) Calculate the economic order quantity. (Round your answer to the nearest whole number of units. (e.g., 1,234)) 0.00 (e) Calculate the number of orders per year that would be required if the EOQ Inventory Policy vere implemented. (Round your answer to 2 decimal places. (e.g., 32. 16)) In What would the EOQ Inventory Balance in dodas/ be in 2019 if the firm switched to the EOQ Inventory Policy? (Do not include the dollar sign ($). Round to the nearest whole dollar. (e.g., 1.234) LOQ Inventor Balance - EOQ units per order x Average inventory value per unit