Diagnostic Supplies has expected sales of 152,100 units per year, with carrying costs of $4 per unit

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Diagnostic Supplies has expected sales of 152,100 units per year, with carrying costs of $4 per unit and ordering cost of $8 per order.

a. What is the economic order quantity?

b-1. What is the average inventory?

b-2. What is the total transportation cost?

Assume that an additional 40 units of inventory will be required as safety stock.

c-1. What will be the new average inventory?

c-2. What will be the new total transportation cost?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Posted Date: Mar 22, 2023 05:23 AM

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Diagnostic Supplies has expected sales of 152,100 units per year, with carrying costs of $4 per unit

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Foundations of Financial Management

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