XYZ Company has developed the following data from its Material A: Safety stock 280 Average (normally) daily use 200 Maximum daily use 240 Minimum daily use 180 Economic order quantity 1000 Cost of placing an order $20 Working days per year 250 days Lead time 6 days 1. What is the cost of carrying an inventory per unit per year? 2. What is the average inventory?

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XYZ Company has developed the following data from its Material A:

Safety stock 280
Average (normally) daily use 200
Maximum daily use 240
Minimum daily use 180
Economic order quantity 1000
Cost of placing an order $20
Working days per year 250 days
Lead time 6 days

1. What is the cost of carrying an inventory per unit per year?

2. What is the average inventory?

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