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

Ranger Company purchases 19,230 units of Product Beta each year in lots of 864 units per order. The cost of placing one order is $13, 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? fill in the blank 1 units

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

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

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

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