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.

(Carrying/ ordering) costs are minimized by holding higher inventory levels. (select one)

The number of units in the optimal size order is called the economic ordering quantity (EOQ). Piven Company purchases custom-made durable packing boxes to ship its equipment. Each year, Piven uses 64,000 boxes. It costs Piven $60 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 Pivens EOQ policy in the following table. SELECT FROM OPTIONS IN BOX

	Value
EOQ for packing boxes	4000 5000 45000 3500
Number of orders per year	13 16 18 14
Total ordering cost for the year	780 1080 960 840
Total carrying cost for the year	960 780 840 1080
Total inventory cost per year	1920 2400 3600 1440