Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit and ordering cost of $8.92 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory? Round to the nearest whole number.

Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit and ordering cost of $8.92 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory? Round to the nearest whole number.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Hammond Supplies expects sales of 235,880 units per year with carrying costs of $2.18 per unit
and ordering cost of $3.1 per order. Assuming the level of inventory is stable, what is the
optimal average number of units in inventory?
Round to the nearest whole number.

Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit
and ordering cost of $8.92 per order. Assuming the level of inventory is stable, what is the
optimal average number of units in inventory?
Round to the nearest whole number.

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