What is the economic ordering quantity and carrying cost

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Reference no: EM131969463

Diagnostic Supplies has expected sales of 200,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order.

a. What is the economic ordering quantity?

b-1. What is the average inventory?

b-2. What is the total carrying cost?

Assume an additional 50 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: EM131969463

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