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,

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)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!