Economic Order Quantity and Inventory Control System
Not what you're looking for?
Fisk Corporation is trying to improve its inventory control system and has installed an on-line computer at its retail stores. Fisk anticipates sales of 75,000 units per year, an ordering cost of $8 per order, and carrying costs of $12.0 per unit.
What is the economic ordering quantity?
How many orders will be placed during the year?
What will the average inventory be?
What is the total cost of ordering and carrying inventory?
Purchase this Solution
Solution Summary
The expert examines the economic order quantity and inventory control systems.
Solution Preview
What is the economic ordering quantity?
EOQ= SQRT ((2AO)/C)
A= Annual demand= 75000
O= ordering cost per order=$8
C= Carrying cost perunit= ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Lean your Process
This quiz will help you understand the basic concepts of Lean.