Widget Co. has the following data available relative to its investment in materials: Number of units of material used annually 20,000 Number of workdays in a year 250 Cost of placing an order $20 Annual carrying cost per unit of inventory $5 Requirements: 1. Compute the economic order quantity (please show your work). EOQ=(2*20*20,00)/5=400 2. Give some examples of order costs and carrying costs. Order costs: cost of placing a purchase order, cost of inspection of received batches, documentations costs, transporttion cost Carrying costs: 3. Using the above data, compute the order size that results in the minimum total order and carrying cost by completing the following table. Order Size Number of Orders Total Order Cost Average Inventory Total Carrying Cost Total Order and Carrying Costs \ 100 200 300 400 500 600 700 800

I do not understand how to calculate all those things with the information given. Can someone please tell me how to? Thank you