EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost

Ranger Company purchases 17,280 units of Product Beta each year in lots of 864 units per order. The cost of placing one order is $12, and the cost of carrying one unit of product in inventory for a year is $7.

Required:

If required, round your answers to nearest whole value.

1.What is the EOQ for Beta?

_____________units

2.How many orders for Beta will Ranger place per year under the EOQ policy?

_____________orders per year

3.What is the total ordering cost of Beta for a year under the EOQ policy?

$____________

4.What is the total carrying cost of Beta per year under the EOQ policy?

$____________

5.What is the total cost of Ranger's inventory policy for Beta per year under the EOQ policy?

$____________