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Diagnostic Supplies has expected sales of 158,700 units per year, carrying costs of $3 per unit, and an ordering cost of $8 per order. a.
Diagnostic Supplies has expected sales of 158,700 units per year, carrying costs of $3 per unit, and an ordering cost of $8 per order.
a. What is the economic ordering quantity? 920 units
b-1. What is the average inventory? 460 units
b-2. What is the 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?
c-2. What will the new total carrying cost be?
I need help with B-2, C-1, C-2
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