Question: Novelty Gifts, Inc. is experiencing some inventory control problems. The manager currently orders 5 , 0 0 0 units four times each year to handle
Novelty Gifts, Inc. is experiencing some inventory control problems. The manager currently orders units four times each year to handle annual demand of units. Each order costs $ and each unit costs $ to carry. The manager maintains a safety stock of units.
C What is average inventory under EOQ if the manager maintains a safety stock of units?
D Calculate total annual inventory cost under EOQ.
units & $
units & $
units & $
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