What is the amount of safety stock what is the average


Problem EOQ (GIVEN)

Annual Units: 126,000

Cost per order: $4

Carrying cost per unit: $1.008 per unit

Lead Time: 4 weeks

What is the ideal amount of inventory?

What is the amount of Safety Stock?

When do you place an order?

What is the average inventory on hand?

What are the annual ordering costs?

What are the annual carrying costs?

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