Inventory must be managed carefully. Your firm has the following data regarding inventory: Carrying costs/unit/week ........................................................$.02 Average
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Inventory must be managed carefully. Your firm has the following data regarding inventory:
Carrying costs/unit/week ........................................................$.02
Average monthly inventory .......................................10,000 units
Cost per order .......................................................................$5,000
Average Daily Sales ...................................................................225
How often must this firm re-order inventory and what is the optimal quantity if we assume that sales are not seasonal?
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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