What should the inventory level be

Reference no: EM131933937

Question: Appliance for Less is a local appliance store It costs this store $1617 per unit annually for storage, insurance, etc to hold microwave in their inventory Sales this year are anticipated to be 339 units Each order costs $67 The company is using Economic Order Quantity model in placing the orders. It takes approximately 1 day(s) to receive an order after it has been placed If the store insists on a 6 day(s) safety stock (assume 365-days a year), what should the inventory level be when a new order is placed?

Reference no: EM131933937

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