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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.
a What is the economic ordering quantity?
b What is the average inventory?
b What is the total carrying cost?
Assume an additional units of inventory will be required as safety stock.
c What will the new average inventory be
c What will the new total carrying cost be
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