Economic Order Quantity; Order Cost; Carrying CostNew England Co. predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.a. Determine the most economical order quantity by using the EOQ formula.3600 gallonsb. Determine the total cost of ordering and carrying at the EOQ point.$ ??????????b. You have been given the cost of placing one order. To determine the total order cost, you will first need to use the EOQ calculated in requirement 1 to determine the number of orders that would be placed in a year.You have also been given the carrying cost per unit of inventory. To determine the total carrying cost, you will first need use the EOQ calculated in requirement 1 to determine the average number of units in inventory.Check:In this case, because there is no safety stock, the total ordering costs will be equal to the total carrying costs.

Economic Order Quantity; Order Cost; Carrying CostNew England Co. predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.a. Determine the most economical order quantity by using the EOQ formula.3600 gallonsb. Determine the total cost of ordering and carrying at the EOQ point.$ ??????????b. You have been given the cost of placing one order. To determine the total order cost, you will first need to use the EOQ calculated in requirement 1 to determine the number of orders that would be placed in a year.You have also been given the carrying cost per unit of inventory. To determine the total carrying cost, you will first need use the EOQ calculated in requirement 1 to determine the average number of units in inventory.Check:In this case, because there is no safety stock, the total ordering costs will be equal to the total carrying costs.

Economic Order Quantity; Order Cost; Carrying CostNew England Co. predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.a. Determine the most economical order quantity by using the EOQ formula.3600 gallonsb. Determine the total cost of ordering and carrying at the EOQ point.$ ??????????b. You have been given the cost of placing one order. To determine the total order cost, you will first need to use the EOQ calculated in requirement 1 to determine the number of orders that would be placed in a year.You have also been given the carrying cost per unit of inventory. To determine the total carrying cost, you will first need use the EOQ calculated in requirement 1 to determine the average number of units in inventory.Check:In this case, because there is no safety stock, the total ordering costs will be equal to the total carrying costs.