Nowlin Pipe & Steel has expected sales of 72,000 pipes this year, an ordering cost of $6.00 per order, and carrying costs of $2.40 per pipe.

a. What is the economic ordering quantity?

Economic ordering quantity (EOQ) ______ Pipes

b. How many orders will be placed during the year?

Number of orders =

c. What will the average inventory be?

Average inventory _______ Pipes

d. What is the total cost of ordering and carrying inventory?

Total cost $