Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800

2- Calculate average inventory to be maintained if Safety stock is 3,000 units

(Trade Credit Discounts) Determine the effective annualized cost of forgoing the trade credit discount on the following terms:

 a.  1/10, net 20

b. 2/10, net 30