Inventory Ony company 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?

Inventory Ony company 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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Question

General Accounting

Inventory
Ony company 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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