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What is the economic order quantity-higgins athletic wear

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Reference no: EM132485089

Problem: Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of $1.50 per unit, and an ordering cost of $3.00 per order.

  1. What is the economic order quantity?
  2. What is average inventory? What is the total carrying cost?
  3. What is the total inventory cost?
  4. Assume an additional 30 units will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Reference no: EM132485089

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