Question: Economic Order Quantity Ottis, Inc., uses 7 0 5 , 6 0 0 plastic housing units each year in its production of paper shredders. The

Economic Order Quantity
Ottis, Inc., uses 705,600 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 168 orders of 4,200 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
3. How much money does using the EOQ policy save the company over the policy of purchasing 4,200 plastic housing units per order? Round your answer to the nearest dollar.
Economic Order Quantity Ottis, Inc., uses 7 0 5 ,

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