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INVENTORY MANAGEMENT QUESTION : A firm’s inventory planning period is one year. It’s inventory requirement for this period is 1600 units. Assume that its acquisition costs are $ 50 per order. The carrying Document Preview:
INVENTORY MANAGEMENT QUESTION : A firm’s inventory planning period is one year. It’s inventory requirement for this period is 1600 units. Assume that its acquisition costs are $ 50 per order. The carrying costs are expected to be @ 1 per unit per year for an item The firm can procure inventories in various lots as follows : 1600 units 800 units 400 units 200 units 100 units Which of these order quantities is the economic order quantity ?
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