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Diagnostic Supplies has expected sales of 175,000 units per year, a carrying cost of $5 per unit, and an ordering cost of $7 per order.
Diagnostic Supplies has expected sales of 175,000 units per year, a carrying cost of $5 per unit, and an ordering cost of $7 per order.
(a) | What is the economic order quantity? |
Economic order quantity | units |
(b-1) | What is average inventory? |
Average inventory | units |
(b-2) | What is the total carrying cost? (Omit the "$" sign in your response.) |
Total carrying cost | $ |
Assume an additional 70 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 | $ |
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