EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Ranger Company purchases 20,530 units of Product beta each year in lots of 864 units per order. The cost of placing one order is $14, and the cost of carrying one unit of product in inventory for a year is $8. Required: If required, round your answers to nearest whole value 1. What is the EOQ for Beta? units 2. How many orders for Deta will Ranger place per year under the EOQ policy? orders per year 3. What is the total ordering cost of Beta for a year under the EOQ policy?

EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Ranger Company purchases 20,530 units of Product beta each year in lots of 864 units per order. The cost of placing one order is $14, and the cost of carrying one unit of product in inventory for a year is $8. Required: If required, round your answers to nearest whole value 1. What is the EOQ for Beta? units 2. How many orders for Deta will Ranger place per year under the EOQ policy? orders per year 3. What is the total ordering cost of Beta for a year under the EOQ policy?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 17P

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Answer last two subparts
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