Economic order quantity

(EOQ).

Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 38 times over the next year. The carrying cost is $0.03per zen-zen per year. The order cost is $652 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost.

What is the annual carrying cost for the zen-zens? $

(Round to the nearest dollar.)