EOQ Problems 1. ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80,000 units, Cost to place one order is SAR 1,200, Cost per unit is SAR 50 and carrying cost is 6% of Unit cost. a. Determine the economic order quantity (EOQ). b. How many orders will be placed per year using the EOQ? c. Determine the ordering, holding, and total inventory costs for the EOQ. 2. Demand for the Child Cycle at Best Buy is 500 units per month. Best Buy incurs a fixed order cost of SAR 4,000 each time an order is placed. Each cycle costs SAR 500 and the retailer has a holding cost of 20 percent. Evaluate the number of computers that the store manager should order in each replenishment lot? 3. An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery's value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. a. Determine the ordering, holding, and total inventory costs for the current order quantity. b. Determine the economic order quantity (EOQ). c. How many orders will be placed per year using the EOQ? d. Determine the ordering, holding, and total inventory costs for the EOQ. How has ordering cost changed? Holding cost? Total inventory cost