1.

Economic Order Quantity (EOQ)

2 ( 150,000 ) ( ₱ 1,500)
EOQ =
√ ₱2
₱ 450,000,000
=
√ ₱2
= √ ₱ 225 , 000,000
= ₱ 15,000

2. No. of the orders per year = Annual demand / EOQ

= 150,000 / 15,000
= 10
3. Ordering cost = Fixed ordering cost X No. of orders per year
= ₱1,500 x 10
= ₱ 15,000
4. Carrying cost = Carrying cost X EOQ / 2
= ₱2 x 15,000 / 2
= ₱ 15,000
5. Total Inventory cost = Ordering cost + Carrying cost
= ₱ 15,000 + ₱15,000
= ₱ 30,000