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Diagnostic Supplies has expected sales of 162,000 units per year, carrying costs of $2 per unit, and an ordering cost of $5 per order. a.
Diagnostic Supplies has expected sales of 162,000 units per year, carrying costs of $2 per unit, and an ordering cost of $5 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 100 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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Risk Sharing Finance
Authors: Bakkali Mirakhor, Saad Abbas
1st Edition
3110590468, 978-3110590463
