14. Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of $1.50 per...

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14. Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of

$1.50 per unit, and an ordering cost of $3 per order.

a. What is the economic order quantity?

b. What will be the average inventory? The total carrying cost?

c. Assume an additional 30 units of inventory will be required as safety stock.
What will the new average inventory be? What will the new total carrying cost be?

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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Question Posted: Oct 22, 2024 06:00 AM

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14. Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of $1.50 per...

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Foundations Of Financial Management

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