Fisk Corporation is trying to improve its inventory control system and has insta

Question

Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 63,000 units per year, an ordering cost of $4 per order, and carrying costs of $1.40 per unit. (a) What is the economic ordering quantity? Economic ordering quantity units (b) How many orders will be placed during the year? Number of orders (c) What will the average inventory be? Average inventory units (d) What is the total cost of ordering and carrying inventory? (Omit the "$" sign in your response.) Total costs $

Explanation / Answer

economic ordering quantity =600 units many orders will be placed during the year= 105 orders average inventory=300 What is the total cost of ordering and carrying inventory= 4+300*1.4= $424

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