What will the new average inventory be

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Reference no: EM131566175

Diagnostic Supplies has expected sales of 175,000 units per year, a carrying cost of $5 per unit, and an ordering cost of $7 per order.

(a) What is the economic order quantity?

 Economic order quantity units

(b-1) What is average inventory?

 Average inventory units

(b-2) What is the total carrying cost? (Omit the "$" sign in your response.)

 Total carrying cost $   

Assume an additional 70 units of inventory will be required as safety stock.

(c-1) What will the new average inventory be?

 Average inventory units

(c-2) What will the new total carrying cost be? (Omit the "$" sign in your response.)

  Total carrying cost $

Reference no: EM131566175

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