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What is the average inventory held during the year

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Reference no: EM132101426

Question - Appliance for Less is a local appliance store. It costs this store $23.93 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 613 units. Each order costs $91. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a 2 days safety stock (assume 365 days a year)?

Reference no: EM132101426

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