Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Diagnostic Supplies has expected sales of 136,900 units per year, a carrying cost of $2 per unit, and an ordering cost of $4 per order.
Diagnostic Supplies has expected sales of 136,900 units per year, a carrying cost of $2 per unit, and an ordering cost of $4 per order. (a) What is the economic order quantity? Economic order quantity units (b-1) What is average inventory? Average inventory units (b-2) What is the total carrying cost? (Omit the "$" sign in your response.) Total carrying cost $ Assume an additional 90 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? (Omit the "$" sign in your response.) 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