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Appliance for Less is a local appliance store. It costs this store $19.08 per unit annually for storage, insurance, etc., to hold microwave in their
Appliance for Less is a local appliance store. It costs this store $19.08 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 682 units. Each order costs $78. 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 3 days safety stock (assume 365 days a year)?
(Round the answer to the whole number)
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