What should the inventory level be when new order is placed

Reference no: EM131933947

Question: Appliance for Less is a local appliance store. It costs this store $19.32 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 397 units. Each order costs $79. The company is using Economic Order Quantity model in placing the orders.

It takes approximately 4 day(s) to receive an order after it has been placed. If the store insists on a 3 day(s) safety stock (assume 365-days a year), what should the inventory level be when a new order is placed? (Round the answer to the whole number)

Reference no: EM131933947

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