Birdd Company Uses 450 Units of a Part Each Year

Essay

Birdd Company uses 450 units of a part each year. The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $2. Birdd currently orders 90 units at a time.
A. Calculate the annual ordering cost of Birdd's current policy.
B. Calculate the annual carrying cost of Birdd's current policy.
C. Calculate the total cost of Birdd's current policy.
D. Calculate the EOQ for Birdd.
E. Calculate the total inventory-related cost at the EOQ.