Diagnostic supplies has expected sales of 194400 units per, Finance Basics

Diagnostic supplies has expected sales of 194400 units per

Question: 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?

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Finance Basics: Diagnostic supplies has expected sales of 194400 units per

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