Superior Tile Distributors Ltd. expects sales of slate tile to be $2,872,0782,872,078 this year, an ordering cost of $7474 per order and carrying costs of $44. The price of each slate tile is $1919.

Enter your answers to ONE DECIMAL PLACE.

A) What is the economic order quantity? Answer

units

For parts B, C and D, assume that EOQ was calculated as 2,3822,382

B) How many orders will be placed during the year?

orders

C) What will the average inventory level be?

D) What is the total cost of ordering inventory:

E) What is the total cost of carrying inventory: $

F) If safety stock of 200200 units was required under company policy, what would be the new average inventory be? Answer