Nowlin Pipe & Steel has projected sales of 19,600 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? Economic ordering quantity b. How many orders will be placed during the year? Number of orders units orders

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Nowlin Pipe & Steel has projected sales of 19,600 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?
Economic ordering quantity
b. How many orders will be placed during the year?
Number of orders
orders
c. What will the average inventory be?
Average inventory
units
units
Transcribed Image Text:Nowlin Pipe & Steel has projected sales of 19,600 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? Economic ordering quantity b. How many orders will be placed during the year? Number of orders orders c. What will the average inventory be? Average inventory units units
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