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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 ____

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