Question: (See Problem 13 for basic data.) In the second year, Fisk Corporation finds that it can reduce ordering costs to $2 per order but that

(See Problem 13 for basic data.) In the second year, Fisk Corporation finds that it can reduce ordering costs to $2 per order but that carrying costs stay the same at $1.60 per unit. Also, volume remains at 49,000 units per year.

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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