Question
Diagnostic Supplies has expected sales of 102,400 units per year, carrying costs of $2 per unit, and an ordering cost of $4 per order. a.
Diagnostic Supplies has expected sales of 102,400 units per year, carrying costs of $2 per unit, and an ordering cost of $4 per order. a. What is the economic ordering quantity?
Economic ordering quantity ____ units b-1. What is the average inventory?
Average Inventory _____ units
b-2. What is the total carrying cost?
Total Carrying Cost _______ Assume an additional 40 units of inventory will be required as safety stock. c-1. What will the new average inventory be?
Average Inventory ____ units c-2. What will the new total carrying cost be?
Total Carrying Cost ____
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