# Question

Given the following information:

Annual sales in units....... 30,000

Cost of placing an order..... $60.00

Per-unit carrying costs....... $ 1.50

Existing units of safety stock.... 300

a. What is the EOQ?

b. What is the average inventory based on the EOQ and the existing safety stock?

c. What is the maximum level of inventory?

d. How many orders are placed each year?

Annual sales in units....... 30,000

Cost of placing an order..... $60.00

Per-unit carrying costs....... $ 1.50

Existing units of safety stock.... 300

a. What is the EOQ?

b. What is the average inventory based on the EOQ and the existing safety stock?

c. What is the maximum level of inventory?

d. How many orders are placed each year?

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