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Diagnostic Supplies has expected sales of 152,100 units per year, carrying costs of $4 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 40 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?
eBook & Resources eBook: Inventory Management ©2017 McGraw-Hill Education. All rights reserved.
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