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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 37,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.60 per unit.
a. What is the economic ordering quantity?
Economic Ordering Quantity ____ units
b. How many orders will be placed during the year?
Number of Orders_____Orders
c. What will the average inventory be?
Average Inventory ____ units
d. What is the total cost of ordering and carrying inventory?
Total Cost____
Please answer each part of question.
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