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Please help and explain, thank you! Ottis, Inc., uses 585,225 plastic housing units each year in its production of paper shredders. The cost of placing
Please help and explain, thank you!
Ottis, Inc., uses 585,225 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 153 orders of 3,825 plastic housing units per year. Required: 1. Compute the economic order quantity. units 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 3,825 plastic housing units per order? Round your answer to the nearest dollarStep by Step Solution
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