Reference no: EM13950742
The Oppermann Corp. has developed a new type of widget. The local distributor expects to increase his sales by 29% over the past year due to this new development. Last year's sles were $102,000 at a selling price of $91 per unit. A safety stock of 22 units has eliminated stockouts. The manager would like to cut costs as much as possible and comes to your for advice.
Warehouse Space = $2.07 per unit
Materials Handling Experience = $1.66 per unit
Insurance Premium = $0.90 per unit
Total Ordering Cost = $79 per order
What is the carrying cost per unit?
How many units will be sold next year?
What is the economic order quantity next year?
What is the amount of average inventory?
How many orders will be made per year?
What is the total cost of this inventory decision?
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