Question
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 144,500
| Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 144,500 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 quantity | units |
| b. | How many orders will be placed during the year? |
| Number of orders | orders |
| c. | What will the average inventory be? |
| Average inventory | units |
| d. | What is the total cost of ordering and carrying inventory? |
| Total cost | $ |
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
