Using the EOQ methods outlined in the chapter, how many kegs of nails should Low order at one time? Compute the corresponding Orders per year, Annual processing cost, Annual warehousing cost, and the Total inventory-related cost.

Low Nail Co. now reports the following data:

Annual demand increased to 2,200 kegs per year

Inventory carrying costs has increased to $1.52 per keg

Order processing costs are now only $52.00 per order

Inflation has raised interest to 1.3% per month and kegs to a cost of $42.00 each

1a. 1b. 1c. 1d. 1e. 1f. Note: Warehouse space rented by Low is only half full on average!!! 1g. \begin{tabular}{|c|c|c|c|c|} \hline Orders per Year & Order Size & Annual Processing Costs ($) & Annual Warehousing Costs ($) & Total Annual Inventory Costs (\$) \\ \hline \hline & & & & \\ \hline \end{tabular} 1h. Recommend to Mr. Low what he should do for his Inventory Management decision. Be clear to state why this is in his best interest