ECONOMIC ORDER QUANTITY (EOQ) ANALYSIS OF INVENTORY INSTRUCTIONS FOR EVALUATION OF ECONOMIC ORDER QUANTITY (EQO: Global Manufacturing, Inc. wants to reevaluate their inventory policy and determine the economic deruantity (FOQ for the firm's current inventory situation. The information you will need to evaluate the firm's current inventory procedure is presented on this worksheet CALCULATION FORMULA: See an explanation of this formula in your textbook on page 866: SAMPLE PRACTICE PROBLEM: This problem is similar to Problem 28-12 HELP: Refer back to your own spreadsheet for Problem 28-12 Also see the file named '06-SAMPLE COMPANY EOO CALCULATIONS & ANALYSIS por provided to help you setup your spreadsheet for these EOQ calculations Global Manufacturing, Inc. currently begins each sales cycle with 294,900 units in stock. This stock is depleted at the end of each sales cycle and then reordered. The firm currently places 14 orders per year The carrying cost per unit is $2.009 per year and the fed order cost is $13,850 per order. Assuming there is no shortage cost for this firm. The average cost of each unit of inventory is $58.17. DATA INPUT Beginning inventory - Ending inventory - Orders per year Carrying cost / unit Fixed order cost Average Inventory cost per unit 294,900 units Ounits 14 orders $2.009 per year $13.850 per order $58.17 per unit NOTE: Cells shaded In YELLOW are the cells you must provide the calculations or analysis. (a) What is the total carrying cost? (Round to the nearest whole dollar. (0.9., 1,234)) (b) What is the restocking cost? (Round to the nearest whole dollar. (e.g., 1,234)) (c) What is the total cost of current inventory policy? (Round to the nearest whole dollar. (e.g., 1.234)) $462,427 (d) Calculate the economic order quantity. (Round your answer to the nearest whole number of units. (e.g. 1,234)) (e) Calculate the number of orders per year that would be required if the EOQ Inventory Policy were implemented. (Round your answer to 2 decimal places. (e.g. 32.16)) What would the EOQ Inventory Balance in dollars) be in 2019 If the firm switched to the EOQ Inventory Policy? (Do not letude the dollar sign (S). Round to the nearest whole dollar. (e.g., 1,234)