Diagnostic Supplies has expected sales of 194,400 units per year, carrying costs of $6 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? b-1. What is the average inventory? b-2. What is the total carrying cost? Assume an additional 80 units of inventory will be required as safety stock. c-1. What will the new average inventory be? c-2. What will the new total carrying cost be?
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