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

_________________(ordering/ carrying) costs are minimized by holding lower inventory.

The number of units in the optimal size order is called the economic ordering quantity (EOQ). Destin Company purchases custom-made durable packing boxes to ship its equipment. Each year, Destin uses 127,500 boxes. It costs Destin $136 to place each order, and the purchase price is $1.92 per box. An analysis indicates that carrying costs are 25% of the purchase price.

Based on the information provided, solve for the values under Destins EOQ policy in the following table.

	Value
EOQ for packing boxes (8,000/9,500/8,500/9,000)
Number of orders per year (16/15/13/14)
Total ordering cost for the year (1,904/2,040/2,176/1,768)
Total carrying cost for the year (2,040/2,176/1,768/1,904)
Total inventory cost per year (3,060/4,080/5,100/7,650)