An electronic company wishes to determine the best order size for its best selling data storage equipment. The company has estimated the annual demand of 1000 units. The holding (carrying cost) is 10% of selling price of $1000 and the ordering cost is $25 to place. What is the economic order quantity?
In the electronic company inventory case, what is the average inventory?
In the electronic company inventory case, how many orders per year will be placed?
In the electronic company inventory case, what is the minimum total annual inventory cost?
In the electronic company case, if annual sales is expected to increase by 50% next year, how would the EOQ changes?