The second part of this exercise utilizes completely new data. It considers how to operationalize the management of EOQ to achieve corporate goals. David, our pointy-haired boss, will be attending an executive meeting where annual goals will be set. He is expecting to be asked to commit to reducing inventories during the next year. Logistics is full of trade-offs and I am concerned the target goals of other departments will conflict with ours. No doubt we will have to reduce our ordering costs and this is our greatest leverage point Identify what our new ordering costs should be so that we can meet our inventory reduction objective. 1 . Last year we ordered 93,463 units for the entire year Last year our inventory carrying post was 32.4% Last year our cost to place an order was $62.24 Last year our unit price was $56.4 What would the COST TO PLACE AN ORDER need to be if: This year our goal is to have a 7.6% inventory reduction (example: a 10% reduction in $100 of inventory becomes $90 in inventory) This year our goal is to have a 5.4% increase in sales (example: a 10% increase in sales of 100 units becomes 110 units) . ALL goals are achieved