E: 5

Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.

a.What is the economic ordering quantity?

Economic ordering quantityunits

b.How many orders will be placed during the year?

Number of ordersorders

c.What will the average inventory be?

Average inventoryunits

d.What is the total cost of ordering and carrying inventory?

Total cost $