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Healthy Glow Juices expects to sell 40,000 cases of celery juice this year. Carrying costs are $14.00 per case per year with ordering costs of $28.00 per order. The company sells its juice at a constant rate every day throughout the year, and keeps 120 cases on hand as safety stock. Round all amounts to the nearest unit or dollar.
Question 1: Calculate the number of cases in the most economic order quantity (EOQ).
Question 2: Calculate the number of orders that will be placed in the year.
Question 3: Calculate the average inventory on hand.
Question 4: Calculate the total ordering cost and carrying cost for the year
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