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Appliance for Less is a local appliance store. It costs this store $18.71 per unit annually for storage, insurance, etc., to hold microwave in their

Appliance for Less is a local appliance store. It costs this store $18.71 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 715 units. Each order costs $90. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a 2 days safety stock (assume 365 days a year)?

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