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Pharoah Electrical, one of the largest generator dealers in Phoenix, sells about 2,400 generators a year. The cost of placing an order with its supplier
Pharoah Electrical, one of the largest generator dealers in Phoenix, sells about 2,400 generators a year. The cost of placing an order with its supplier is $650, and the inventory carrying costs are $150 for each generator. Pharoah likes to maintain safety stock of 17 generators at all times.
1 . What is the firms EOQ?
2.How many orders will the firm need to place this year?
3.What is the average inventory for the season?
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