Marikina Shoe Company has expected sales of 35,000 units a year. It has an ordering cost of $5 dollars per order and carrying costs of $2 per unit. Round all your answers to the nearest whole number. (10 points)

 

What is the economic order quantity? (2 points)
What is the average inventory? (2 points)
What is the total carrying costs? (2 points)
What is the total inventory costs? (2 points)
Assume 45 units will be required as safety stock. What will the new average inventory be? What will the new carrying cost be?

Answer rating: 100% (QA)

aTo calculate the economic order quantity EOQ we can use the formula EOQ 2 Annual Demand Ordering Co... View the full answer