Fiber technology Inc., manufactures glass fibers in the communications industry, The company's materials and parts manager is currently revising the inventory policy for XL-20, one of the chemicals used in the production process. The chemical is purchased in 10 pound canisters for $97 each. The firm uses 4,000 canisters per year. The controller estimates that it costs $152 to place and recieve a typical order of XL-20. The annual cost of storing XL-20 is $4.20 per canister.

1. Prepare a table showing the total amount cost of ordering and storing XL-20 for each of the following order quantities. 500, 1,000, and 2,000 canisters.

	Order Size	Order Size	Order Size
	500	1000	2000
Number of orders
Ordering Costs
Average inventory
Holding costs
Total Annual costs