Question: Economic Order Quantity Compute the necessary values below to find the MOST economical quantity to order! Demand = 1 2 , 0 0 0 Annual

Economic Order Quantity Compute the necessary values below to find the MOST economical quantity to order!
Demand =12,000 Annual Requirements or Demand, in units
Cost per item = $160.00 Purchase cost per Unit
A = $1,920,000 Annual Usage, in dollars
B = $115.00 Administrative costs per order of placing the order
C =28% Carrying costs of the inventory (expressed as an annual percentage of the inventory dollar value)
EOQ value = $39,713.26(exact value)
EOQ units =248(rounded number)
Using this CONTINUIOUS inventory management system, every time that you need to order this item, you buy EOQ of them!
Next, compute the following values using the EOQ units (rounded into whole items, as above)
Annual Ordering Cost = in dollars
Annual Inventory Holding Cost = in dollars
TOTAL Annual Cost = in dollars
Why are the Ordering Cost and Holding Cost not exactly equal, as seen on the chart?

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