EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800 units. To avoid stockout costs, it maintains 200 units in safety stock. What is Ram Corporation's average inventory of such merchandise item? a. 400 units c. 500 units b. 600 units d. 1,000 units
EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800 units. To avoid stockout costs, it maintains 200 units in safety stock. What is Ram Corporation's average inventory of such merchandise item? a. 400 units c. 500 units b. 600 units d. 1,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800 units. To avoid stockout costs, it maintains 200 units in safety stock. What is Ram Corporation's average inventory of such merchandise item?
a. 400 units c. 500 units
b. 600 units d. 1,000 units
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