Calculate the total cost of ordering and carring inventories

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Reference no: EM13784487

The following inventory data have been established for the Stamps Company:

1. Orders must be placed in mulitples of 400 units.

2. Annual sales are 720,000 units

3. The purchase price Per unit from suppliers is $14.

4. Carrring cost is 30 percent of the purchase price of goods.

5. Fixed order cost is $90.00

6. three days are required for delivery

What is the EOQ
How many orders should Stamps place each year
At what inventory level should an order be made?
Calculate the total cost of ordering and carring inventories if the order quanity is (i) the EOQ amount (given the 400 units per order restrictions), (ii) 4,000 units, or (iii) 6,400 units

Reference no: EM13784487

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