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Seve B Exh

Diagnostic Supplies has expected sales of $194,400$ units per year, carrying costs of $$6$ per unit, and an ordering cost of $$8$ per order.

a$.$ What is the economic ordering quantity?

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$?$

$\backslash$table$[[$Average inventory$]]$

c$-2.$ What will the new total carrying cost be$?$

Total carrying cost $$