Environmental considerations, material losses, and waste disposal can be included in the EOQ model to improve inventory-management decisions. Assume that the annual demand for an industrial chemical is 2,200 lb, item cost is $2/lb, order cost is $33, inventory holding cost rate (percent of item cost) is 18 percent. Use the EOQ Model Excel template in MindTap to answer the following:

Find the EOQ and total cost, assuming no waste disposal. Do not round intermediate calculations. Round your answer for the EOQ to the nearest whole number and for the total cost to the nearest cent.

Economic Order Quantity: 114.32 lb

Total cost: $ 228.63

Choose the correct graph illustrating the inventory costs.

The correct graph is graph A .

A. B. C. D. Now assume that eight percent of the chemical is not used and disposed of, with a disposal cost of $0.50/lb. Find the EOQ and total cost when disposal costs are incorporated into the model. (Hint: add to the holding cost the disposal cost times the percent of product that is disposed of.) Round your answer for the EOQ to the nearest whole number and round your answer for the total cost to the nearest cent. Use the rounded EOQ value in your calculations. Do not round any other intermediate calculations.

Economic Order Quantity: 114.32 lb

Total cost: $ 228.63

What implications do these results have for sustainability practices?

Although the total cost in part b is -Select- , by adjusting the economic order quantity, the company -Select- actually save additional costs while protecting the environment.