roblem 7-36

Nowlin Pipe & Steel has expected sales of 72,000 pipes this year, an ordering cost of $6.00 per order, and carrying costs of $2.40 per pipe.

a. What is the economic ordering quantity?

Economic ordering quantity (EOQ) Pipes

b. How many orders will be placed during the year?

Number of orders

c. What will the average inventory be?

Average inventory Pipes

d. What is the total cost of ordering and carrying inventory?

Total cost $