17)

Diagnostic Supplies has expected sales of 136,900 units per year, carrying costs of $2 per unit, and an ordering cost of $4 per order.

a.	What is the economic ordering quantity?

Economic ordering quantity

units

b-1.	What is the average inventory?

Average inventory

units

b-2.	What is the total carrying cost?

Total carrying cost

$

Assume an additional 90 units of inventory will be required as safety stock.

c-1.	What will the new average inventory be?

Average inventory

units

c-2.	What will the new total carrying cost be?

Total carrying cost

$