Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 84,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.2 per unit.
a. What is the economic ordering quantity?
Economic ordering quantity (EOQ) units
b. How many orders will be placed during the year?
Number of orders
c. What will the average inventory be?
Average inventory units
d. What is the total cost of inventory expected to be?
Total costs $