Chapter 20 Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints 1078 Exercise 20.7 Economic Order Quantity Refer to the data in Exercise 20.6. OBJECTIVE 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? Exercise 20.9 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: Reorder Point OBJECTIVE 6,300 units 315 units Economic order quantity Average daily usage Maximum daily usage 375 units 4 days Lead time Required: I. What is the reorder point assuming no safety stock is carried? 2. What is the reorder point assuming that safety stock is carried? Chapter 20 Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints 1078 Exercise 20.7 Economic Order Quantity Refer to the data in Exercise 20.6. OBJECTIVE 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? Exercise 20.9 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: Reorder Point OBJECTIVE 6,300 units 315 units Economic order quantity Average daily usage Maximum daily usage 375 units 4 days Lead time Required: I. What is the reorder point assuming no safety stock is carried? 2. What is the reorder point assuming that safety stock is carried