Reference no: EM132620433

Question 1: Identify what our new ordering costs should be so that we can meet our inventory reduction objective.

Option 1: Last year we ordered 93,463 units for the entire year

Option 2: Last year our inventory carrying cost was 32.4%

Option 3: Last year our cost to place an order was $62.24

Option 4: Last year our unit price was $56.4

Question 2: What would the COST TO PLACE AN ORDER need to be if:

Option 1: This year our goal is to have a 7.6% inventory reduction (example: a 10% reduction in $100 of inventory becomes $90 in inventory)

Option 2: This year our goal is to have a 5.4% increase in sales (example: a 10% increase in sales of 100 units becomes 110 units)

Option 3: ALL goals are achieved