The following inventory data have been established for the Stamps Company:

The following inventory data have been established for the Stamps Company:

1. Orders must be placed in mulitples of 400 units.

2. Annual sales are 720000 units

3. The purchase price Per unit from suppliers is $14.

4. Carrring cost is 30 percent of the purchase price of goods.

5. Fixed order cost is $90.00

6. three days are required for delivery

a. what is the EOQ

b. How many orders should Stamps place each year

c. at what inventory level should an order be made?

d. calculate the total cost of ordering and carring inventories if the order quanity is (i) the EOQ amount (given the 400 units per order restrictions) (ii)
4000 units or (iii) 6400 units