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Requirement 1. Compule the optimal adet quantty using the EOQ model Requirement 2. Corpute (a) the number of oeders per year and (b) the annual

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Requirement 1. Compule the optimal adet quantty using the EOQ model Requirement 2. Corpute (a) the number of oeders per year and (b) the annual reterans balal cost of ondoring and carryng imentory (a) Compute the mumber of orders por var The total iekvant crideng cosh ae The lotui tmivark caryerg conte ace Tre opsinal ordet quartity is The totat ferewant ondering costs are Now find the invised total redevant carrnig costs using the new carryng cost of $30 (Round your answer fo the nearest whole doliar) Tre potal relevon cairgng costs are Whole solar ? be if manbgers wore evalubled based upon al carrying costs D. Best Deal Depot probebly doent not nchedo the ofportunity cosfs of carryng inventory becauset is not tracked by the financial accounfing system The cortcany could change the Lven though thes would imolve an adstans calcustion, 1 cost of ordering and carrying inventory 3. Assume that when evaluating the manager, the company excludes the opportunity cost of carrying inventory If the manager makes the EOQ decision excluding the opportunity cost of carrying inventory, the relevant carrying cost would be $30, not $65. How would this affect the EOQ amount and the actual annual relevant cost of ordering and carrying inventory? 4. What is the cost impact on the company of excluding the opportunity cost of carrying inventory when making EOQ decisions? Why do you think the company currently excludes the opportunity costs of carrying inventory when evaluating the manager's performance? What could the company do to encourage the manager to make decisions more congruent with the goal of reducing total inventory costs

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