What is the average inventory

Assignment Help Financial Management

Reference no: EM132005921

Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 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 60 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?

Reference no: EM132005921

Questions Cloud

What is the weighted mean of rate of return for portfolio : What is the weighted mean of the rate of return for this portfolio?

Holders may receive compensation for investment : common stock holders may receive compensation for their investment in the form of

Conceptual differences between APR and IRR : The calculations of APR and IRR are same but these two values are conceptually very different. Please explain these conceptual differences between APR and IRR.

Calculate the effective interest rate of the two loans : Loan A is repaid monthly while the Loan B is repaid quarterly. Calculate the Effective Interest Rate of the two loans.

What is the average inventory : What is the economic ordering quantity? What will the new average inventory be? What is the average inventory?

Foreign company that issued the underlying security : Sponsored ADRs are created by a bank at the request of foreign company that issued the underlying security.

What is the highest net profit possible for the speculator : What is the highest net profit possible for the speculator based on the information above?

What is their nominal yield to maturity : What is their nominal yield to maturity? What is their nominal yield to call?

Currency carry trade : Currency carry trade. The C$/$ spot exchange rate is C$1.10/$ and the 90 day forward exchange rate is C$1.15/$. The forward premium

User Account

All Pages