12.9 - Inventory Management

1) Davis Supply maintains an average inventory of2,000 dinosaur skulls for sale to filmmakers. The carrying cost perskull per year is estimated to be $150.00 and the fixed order costis $44. What is the economic order quantity (EOQ)? (Round to thenearest whole number.)

2) Hammond Supplies expects sales of120,340 units per year with carrying costs of $4.28 per unit andordering cost of $7.82 per order. Assuming the level ofinventory is stable, what is the optimal average number of units ininventory? Round to the nearest whole number.