Question: Rainbow Inc. is experiencing some inventory control problems. The manager, Jim Brown, Currently orders 8,000 units five times each year to handle annual sales demand

Rainbow Inc. is experiencing some inventory control problems. The manager, Jim Brown, Currently orders 8,000 units five times each year to handle annual sales demand of 40,000 units. each order costs $15 and each unit costs $2 to carry.

A) What is Rainbows current total annual inventory cost?

B) Calculate the economic ordering quantity (EOQ).

C)What is the average inventory under EOQ if Mr. Brown maintains a Safety stock of 200 units?

D)Calculate the total annual inventory cost using EOQ for Q (Quantity)

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