Question
Larry Styles, owner of Stylish Lamps, is a large retailer of specialty lamps. Larry is trying to minimize ordering and selling costs. The company sells
Larry Styles, owner of Stylish Lamps, is a large retailer of specialty lamps. Larry is trying to minimize ordering and selling costs. The company sells 115,057 lamps a year. Ordering costs are $110 per order and annual carrying costs are $5 per lamp. Larry likes to keep 170 lamps in inventory at all times.
You have calculated Stylish Lamps EOQ as: 2,250units
Round all answers to nearest whole number (e.g. 1,355)
What is the number of orders? Answer: Answer
orders
What is the average inventory? Answer: Answer
units
Use your rounded figures from above to calculate the below, again round below to nearest whole number (e.g. 1,355)
What is the total carrying costs? Answer: $Answer
What is the total ordering costs? Answer: $
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