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The following inventory data have been established for the Cotton Tops Inc. - Annual sales are 400,000 units. - The purchase price per unit is
| The following inventory data have been established for the Cotton Tops Inc. |
| - Annual sales are 400,000 units. |
| - The purchase price per unit is $3.50 |
| - Carrying cost is 8% percent of the purchase price of goods. |
| - Cost per order placed is $8. |
| - Desired safety stock is 30 days supply. |
| Use the provided data to compute: |
| (a) EOQ |
| (b) Average Inventory |
| (c) Maximum Inventory |
| (d) Optimal number of orders per year |
| (e) Total inventory cost |
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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
