Each order costs 65 the company is using the economic order


Appliances for Less is a local appliance store. It costs this store $24.92 per unit annually for storage, insurance, and so forth to hold microwaves in its inventory. Sales this year are anticipated to be 448 units. Each order costs $65. The company is using the Economic Order Quantity model in placing the orders.

It takes approximately 1 day(s) for the company to receive an order after it has been placed. If the store insists on a 1-day safety stock (assume 365 days a year), what should the inventory level be when a new order is placed?

Round the answer to the nearest whole number.

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Finance Basics: Each order costs 65 the company is using the economic order
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