Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.60 per pipe. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be?

Principles of Accounting Volume 2
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Chapter7: Budgeting
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Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.60 per pipe.

a. What is the economic ordering quantity?

b. How many orders will be placed during the year?

c. What will the average inventory be?

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