1) Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.
2) (See Problem 13 for basic data.) In the second year, Fisk Corporation finds that it can reduce ordering cost to $2 per order but that carrying costs stay the same at $1.60 per unit. Also, volume remains at 49,000 units per year.
a) What is the economic ordering quantity?
b) How many orders will be placed during the year?
c) What will the average inventory be?
d) What is the total cost of ordering and carrying inventory?
Please show work and steps of how you come up with the solutions