Quantity minimizing the inventory cost


Question: A sporting equipment distributor expects to sell 10,000 cases of tennis balls during the coming year at a steady rate. Yearly carrying cost (to be determined on the average number of cases in stock during the year) are $10 per case, and the cost of placing an order with the manufacturer is $80. Determine the economic order quantity, that is, the order quantity that minimizes the inventory cost.

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Quantity minimizing the inventory cost
Reference No:- TGS0692069

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)