Compute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of P1,200 every order and carrying cost of P1.50 per unit. How much is the Annual Carrying Cost? How much is the Annual Ordering Cost? How much is the Total Inventory Cost?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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  1. Compute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of P1,200 every order and carrying cost of P1.50 per unit.
  2. How much is the Annual Carrying Cost?
  3. How much is the Annual Ordering Cost?
  4. How much is the Total Inventory Cost?
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