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Rudd Company uses 40,000 micro-chips each year in its production of digital cameras. The of placing an order is $75. The cost of holding one unit of inventory for one year is $8. Currenty Rudd places 20 orders of 2,000 units per order. cost Compute: (a) The annual ordering cost. (2 marks) (2 marks) (2 marks) (2 marks) (b) The annual carrying cost. (c) The total cost of Rudds current inventory policy. (d) The economic order quantity. (e) The order cost and the carrying cost for the EOQ
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