Question: 2 Farm Friends, is experiencing some inventory control problems. The manager, currently orders 20,000 units ten times each year to handle the annual demand of
2 Farm Friends, is experiencing some inventory control problems. The manager, currently orders 20,000 units ten times each year to handle the annual demand of 200,000 units. Each order costs $10 and each unit costs $0.50 to carry. The company maintains a safety stock of 1000 units A) What is the current total annual inventory cost? B) Calculate the economic ordering quantity (EOC)
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