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Nowlin Pipe & Steel has projected sales of 33,800 pipes this year, an ordering cost of $8 per order, and carrying costs of $2.00 per
Nowlin Pipe & Steel has projected sales of 33,800 pipes this year, an ordering cost of $8 per order, and carrying costs of $2.00 per pipe.
| 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 |
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Global Corporate Finance A Focused Approach
Authors: Suk Hi Kim, Kenneth A Kim
2nd Edition
9814618004, 9789814618007
