Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 58,800 units per year, an ordering cost of $1 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? Economic ordering quantity b. How many orders will be placed during the year? orders Number of orders units c. What will the average inventory be?
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 58,800 units per year, an ordering cost of $1 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? Economic ordering quantity b. How many orders will be placed during the year? orders Number of orders units c. What will the average inventory be?
Chapter1: Financial Statements And Business Decisions
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![Problem 7-14 Economic ordering quantity [LO7-5]
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk
anticipates sales of 58,800 units per year, an ordering cost of $1 per order, and carrying costs of $1.50 per unit.
a. What is the economic ordering quantity?
Economic ordering quantity
b. How many orders will be placed during the year?
Number of orders
orders
c. What will the average inventory be?
units
units
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Transcribed Image Text:Problem 7-14 Economic ordering quantity [LO7-5]
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk
anticipates sales of 58,800 units per year, an ordering cost of $1 per order, and carrying costs of $1.50 per unit.
a. What is the economic ordering quantity?
Economic ordering quantity
b. How many orders will be placed during the year?
Number of orders
orders
c. What will the average inventory be?
units
units
< Prev
8 of 9
Next >
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