Using the information provided in Problem 20, (a) Calculate the economic order quantity for each item. (Round

Question:

Using the information provided in Problem 20,
(a) Calculate the for each item. (Round to the nearest whole number.)
(b) Calculate the company’s maximum inventory investment throughout the year.
(c) Calculate the company’s average inventory level.

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...