EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Refer to the data for Zellen…

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EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Refer to the data for Zellen Company (p. 348).

Required:

1. What is the EOQ for Beta?

2. How many orders for Beta will Zellen place per year under the EOQ policy?

3. What is the total ordering cost of Beta for a year under the EOQ policy?

4. What is the total carrying cost of Beta per year under the EOQ policy? 5. What is the total cost of Zellen’s inventory policy for Beta per year under the EOQ policy?

 

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