Fisk Corporation is trying to improve its inventory control system and has installed an online computer...

 
  

Transcribed Image Text:

Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 38,400 units per year, an ordering cost of $2 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? Economic ordering quantity units b. How many orders will be placed during the year? Number of orders orders c. What will the average inventory be? Average inventory units d. What is the total cost of ordering and carrying inventory? Total cost Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 38,400 units per year, an ordering cost of $2 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? Economic ordering quantity units b. How many orders will be placed during the year? Number of orders orders c. What will the average inventory be? Average inventory units d. What is the total cost of ordering and carrying inventory? Total cost

Answer rating: 100% (QA)

Given Anticipated sales per year 38400 units Ordering cost 2 per order Carrying cost 150 per unit 1 ... View the full answer