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Problem #2 - Fisk corporation is trying to improve its inventory control system and has installed an online computer at its retail store. Fisk anticipates

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Problem #2 - Fisk corporation is trying to improve its inventory control system and has installed an online computer at its retail store. Fisk anticipates sales of 75,000 units per year, and ordering cost of $8 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during this year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory? Problem #3 - (See problem #2 for basic data) In the second year, Fisk corporation finds that it can reduce ordering cost to $2 per order but that carrying cost stays the same at $1.20. Also, volume remains at 75,000 units. a. Recompute a, b, c and d in Problem 2 for the second year b. Now compare years one and two and explain what happens

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