What is the average inventory and total carrying cost

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Reference no: EM131990018

Diagnostic Supplies has expected sales of 96,100 units per year, carrying costs of $4 per unit, and an ordering cost of $8 per order.

Economic Ordering Quantity is 620.

b-1. What is the average inventory?

b-2. What is the total carrying cost?

Assume an additional 100 units of inventory will be required as safety stock.

c-1. What will the new average inventory be?

c-2. What will the new total carrying cost be?

Reference no: EM131990018

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