Nowlin Pipe & Steel has expected sales of 72,000 pipes this year, an ordering cost of $6.00

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Nowlin Pipe & Steel has expected sales of 72,000 pipes this year, an ordering cost of $6.00 per order, and carrying costs of $2.40 per pipe.
a. What is the economic ordering quantity?
b. How many orders will be placed during the year?
c. What will the average inventory be?
d. What is the total cost of ordering and carrying inventory?

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Related Book For  answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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