Homework #8C (EOQ, Average Inventory)

Question 8 (1 point)

Appliance for Less is a local appliance store. It costs this store $19.50 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 381 units. Each order costs $95. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a 4 dayssafety stock (assume 365 days a year)?

 (Round the answer to the whole number)