Problem:
An organization uses 4000 boxes of bolts a year. The boxes cost $28 each. Ordering cost is $250 and a holding cost of 15% of the purchase cost oer unit on an annual basis. There is a constant holding of a safety stock of 100 boxes of bolts.
Determine:
a. the economic order quantity
b. the total cost of carrying the bolts(excl purchase price)
c. the average inventory