Question
AWM sells 291,600 units of product annually. The optimal safety stock is 500 units. Each units costs AWM $3, carrying costs are 30%, and the
AWM sells 291,600 units of product annually. The optimal safety stock is 500 units. Each units costs AWM $3, carrying costs are 30%, and the cost of placing an order with the supplier is $20.
a) Compute the EOQ.
b) Compute the total inventory costs at the EOQ level.
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
