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Fullerton IV Company currently has a policy of reordering inventory every 30 days. Using the data below, how much could Fullerton reduce its total inventory
| Fullerton IV Company currently has a policy of reordering inventory every 30 days. Using the data | |||||||||
| below, how much could Fullerton reduce its total inventory cost if it used the EOQ? | |||||||||
| Ordering cost | F | $10 | per order | ||||||
| Carrying cost | C | 20% | of purchase price | ||||||
| Purchase price | P | $10 | per unit | ||||||
| Total sales per year | S | 1,000 | units | ||||||
| Safety stock | 0 | ||||||||
| Days per year | 360 | ||||||||
Please show work/ calculation and kind of explain how you solved it so I can follow.
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
