What will the new average inventory be

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Reference no: EM132000149

Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 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 70 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: EM132000149

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