Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The carrying cost per skull per year is estimated to be

Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The carrying cost per skull per year is estimated to be $150.00 and the fixed order cost is $85. What is the economic order quantity (EOQ)? (Round to the nearest whole number.)

Hammond Supplies expects sales of 188,429 units per year with carrying costs of $2.35 per unit and ordering cost of $7 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory?

Round to the nearest whole number.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What issues can arise when the CPU runs at a very fast rate?

Answered: 1 week ago

Question

What are the main ideas?

Answered: 1 week ago