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An industrial engineer is trying to study the relationship between the average stock in the warehouse and the total inventory cost. /she collected the following
An industrial engineer is trying to study the relationship between the average stock in the warehouse and the total inventory cost. /she collected the following data:
Month | Average stock level (units) | Total warehouse cost ($) |
June | 19500 | 44000 |
July | 21000 | 46300 |
August | 18500 | 42000 |
September | 16200 | 39430 |
- Using the high-low method, estimate a cost formula between the average stock level and the total warehouse cost.
- Estimate the cost during October if the average stock of the last year was 13500 units.
- If at October this year, the total warehouse cost was equal to 26,650. What would have the average stock level inventory been?
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