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Inventory costs can be categorized as the costs incurred for holding the inventory running out of inventory the costs of ordering and receiving the inventory,

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Inventory costs can be categorized as the costs incurred for holding the inventory running out of inventory the costs of ordering and receiving the inventory, and the cost of Carrying costs are the direct and Indirect costs of keeping inventory The number of units in the optimal size order is called the economic ordering quantity packing boxes to ship its equipment. Each year, Herman uses 180,000 boxes. It costs Herman $1.92 per box. An analysis indicates that carrying costs are 25% of the purchase price. Herman Company purchases custom-made durable $108 to place each order, and the purchase price is Based on the information provided, solve for the values under Herman's EOQ policy in the following table. Value > > EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total Inventory-related cost per year > >

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