Question

Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

a. What is the economic order quantity?
b. What is the average inventory? What is the total carrying cost?

c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Answer 1

"Diagnostic Supplies has expected sales of 84,100" units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

Step-by-step explanation:

Answer 2

Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Step-by-step explanation: