What is the economic order quantity and average inventory

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Reference no: EM131372401

1. An electronic company wishes to determine the best order size for its best selling data storage equipment. The company has estimated the annual demand of 1000 units. The holding ( carrying cost) is 10% and the ordering cost is $25 to place. What is the economic order quantity?

A. 7 units

b. 22.4 units

C 707 units

d 1000 units

2. In the electronic company inventory case, what is the average inventory?

A. 3.5 units

B. 11.2 units

C. 353.5 units

D. 500 units

3. In the electronic company inventory case; what is the minimum total annual inventory cost ?

A. 1,120

B. 2,236

C. 1,116

D. 1,000

4. In the electronic company case, if annual sales is expected to increase by 50% next year, how would the EDQ changes ?

a 22.4 units

B. 27.4 units

C. 33.6 units

D. 11.3 units.

Reference no: EM131372401

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