A firm has an annual demand for units of inventory of 1,000 per year. The cost of placing an order each time is $90 and each item of inventory costs $2 to store. In this case, what would be the optimal amount of stock that should be ordered?

A firm has an annual demand for units of inventory of 1,000 per year. The cost of placing an order each time is $90 and each item of inventory costs $2 to store. In this case, what would be the optimal amount of stock that should be ordered?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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General Accounting

A firm has an annual demand for units of inventory of
1,000 per year. The cost of placing an order each time is
$90 and each item of inventory costs $2 to store. In this
case, what would be the optimal amount of stock that
should be ordered?

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