SS LIMITED Inventory Cost Management
		Annual Holding Cost / unit	Total Holding Cost / Buffer Stock	Total Holding Cost / Orders	Fixed Cost / order	Total Ordering Cost / Orders	Total Cost	Saving by Economic Order Quantity
Annual Consumption, units	1,800,000	1.50			37.50
Quantity per Order, units	50,000		42,000.00	37,500.00		1,350.00	80,850.00
Economic Order Quantity, units	9,487		42,000.00	7,115.25		7,115.00	56,230.25	24,619.75
Buffer Stock, units	28,000
Weekly Demand, units	36,000
Lead Time, weeks	2
Reorder Level	100,000							Analyzing the validity of the optimal quantity for orders: