Fisk Corporation is trying to improve its inventory control system and has installed an online computer at
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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $2 per order, and carrying costs of $1.60 per unit.
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
Foundations Of Financial Management
ISBN: 9781260013917
17th Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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