Question: Economic Order Quantity Ottis, Inc., uses 6 8 0 , 6 2 5 plastic housing units each year in its production of paper shredders. The

Economic Order Quantity
Ottis, Inc., uses 680,625 plastic housing units each year in its production of paper shredders. The cost of placing an
order is $30. The cost of holding one unit of inventory for one year is $15. Currently, Ottis places 165 orders of 4,125
plastic housing units per year.
Required:
Compute the economic order quantity.
units
Compute the ordering, carrying, and total costs for the EOQ.
Ordering cost
Carrying cost
Total cost
How much money does using the EOQ policy save the company over the policy of purchasing 4,125 plastic housing
units per order? Round your answer to the nearest dollar.
$
x
Economic Order Quantity Ottis, Inc., uses 680,625 plastic housing units each

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