Question
Cullumber Electrical, one of the largest generator dealers in Phoenix, sells about 1,500 generators a year. The cost of placing an order with its supplier
Cullumber Electrical, one of the largest generator dealers in Phoenix, sells about 1,500 generators a year. The cost of placing an order with its supplier is $750, and the inventory carrying costs are $120 for each generator. Cullumber likes to maintain safety stock of 11 generators at all times.
What is the firms EOQ? (Round answer to 0 decimal places, e.g. 125.) How many orders will the firm need to place this year? (Round answer to 0 decimal places, e.g. 125.) What is the average inventory for the season? (Round answer to 0 decimal places, e.g. 125.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started