Economic Order Quantity

Ottis, Inc., uses 656,100 plastic housing units each year in its production of paper shredders. The cost of placing an order is $42. The cost of holding one unit of inventory for one year is $21. Currently, Ottis places 162 orders of 4,050 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 4,050 plastic housing units per order? Round your answer to the nearest dollar

$fill in the blank 5