Question
Diagnostic Supplies has expected sales of 152,100 units per year, with carrying costs of $4 per unit and ordering cost of $8 per order. a.
Diagnostic Supplies has expected sales of 152,100 units per year, with carrying costs of $4 per unit and ordering cost of $8 per order.
a. What is the economic order quantity?
b-1. What is the average inventory?
b-2. What is the total transportation cost?
Assume that an additional 40 units of inventory will be required as safety stock.
c-1. What will be the new average inventory?
c-2. What will be the new total transportation cost?
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a Annual Demand Carrying cost Order cost per order Eco...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
