Ch$.7$ Problems: Managing Current Assets $($i$)$

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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 $37,500$ units per year, an ordering cost of $$12$ per order, and carrying costs of $$1\mathrm{.}60$ per unit.

$1\mathrm{.}6$

a$.$ What is the economic ordering quantity?

points

$\backslash$table$[[$Economic ordering quantity,$750,$units$]]$

b$.$ How many orders will be placed during the year?

$\backslash$table$[[$Number of orders,$37,500,$orders$]]$

c$.$ What will the average inventory be$?$

Average inventory

$375$ units

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