Question: Jackson Electrical, one of the largest generator dealers in Phoenix, sells about 2,000 generators a year. The cost of placing an order with its supplier

Jackson Electrical, one of the largest generator dealers in Phoenix, sells about 2,000 generators a year. The cost of placing an order with its supplier is $750, and the inventory carrying costs are $170 for each generator. Jackson likes to maintain safety stock of 15 generators at all times.

a. What is the firm’s EOQ?

b. How many orders will the firm need to place this year?

c. What is the average inventory for the season?

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