What is the maximum inventory amount

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Reference no: EM132181648

Mungo Pet Supplies makes cat trees for several pet store chains. They order rolls of carpet (used to cover the trees) from a supplier. Mungo’s management has decided to use an EOQ model. The annual demand for carpet is estimated to be 1,000 rolls. The purchase price per roll is $20 and estimated inventory carrying cost rate is 25%. The cost to place an order from the supplier is $30.

What is the maximum inventory amount that Mungo can expect to hold at any one time?

Reference no: EM132181648

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