Question
16) Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of
16)
| Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 48,400 units per year, an ordering cost of $12 per order, and carrying costs of $1.50 per unit. |
| a. | What is the economic ordering quantity? |
| Economic ordering quantity | units |
| b. | How many orders will be placed during the year? |
| Number of orders | orders |
| c. | What will the average inventory be? |
| Average inventory | units |
| d. | What is the total cost of ordering and carrying inventory? |
| Total cost | $ |
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
