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Diagnostic Supplies has expected sales of 1 5 2 , 1 0 0 units per year, carrying costs of $ 4 per unit, and an
Diagnostic Supplies has expected sales of units per year, carrying costs of $ per unit, and an ordering cost of $ per order.
points
a What is the economic ordering quantity?
What is the average inventory?
What is the total carrying cost?
Total carrying cost
Assume an additional units of inventory will be required as safety stock.
c What will the new average inventory be
Average inventory
What will the new total carrying cost be
Total carrying cost
Total carrying cost
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