Economic Order Quantity

Ottis, Inc., uses $680,625$ plastic housing units each year in its production of paper shredders. The cost of placing an

order is $$30.$ The cost of holding one unit of inventory for one year is $$15.$ Currently, Ottis places $165$ orders of $4,125$

plastic housing units per year.

Required:

Compute the economic order quantity.

units

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

Ordering cost

Carrying cost

Total cost

How much money does using the EOQ policy save the company over the policy of purchasing $4,125$ plastic housing

units per order? Round your answer to the nearest dollar.

$

x