Chapter 20 Inventory Management Economic Order Quantity, JIT, and the Theory of Constraine OBJECTIVE O Exercise 20.7 Economic Order Quantity Refer to the data in Exercise 20.6. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchas. ing 4,000 plastic housing units per order? nar d ar Ouantity OBJECTIVE Exercise 20.9 Reorder Point Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows: Economic order quantity 6,300 units Average daily usage 315 units Maximum daily usage 375 units Lead time 4 days Pored Chapter 20 Inventory Management Economic Order Quantity, JIT, and the Theory of Constraine OBJECTIVE O Exercise 20.7 Economic Order Quantity Refer to the data in Exercise 20.6. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchas. ing 4,000 plastic housing units per order? nar d ar Ouantity OBJECTIVE Exercise 20.9 Reorder Point Shorts Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows: Economic order quantity 6,300 units Average daily usage 315 units Maximum daily usage 375 units Lead time 4 days Pored