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Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order. a.
| Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 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 80 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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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
