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Kinggo Inc. follows a moderate current asset investment policy, but is now considering a change, perhaps to a restricted or maybe to a relaxed...
Q1. Kinggo Inc.difference
Q2
2A. Base on Q2, Pinecrest is able to negotiate a reduction in the fixed ordering costs to $250.00 per order, but Pinecrest decides to carry a safety stock of 42 days of memory chip sales. With the reduced fixed ordering cost and the increased average inventory due to the safety stock carried, what is the additional total inventory costs due to the decision to balance out uncertainty by carrying the specified safety stock?
Q3. Marina Inc. purchases 100,000 office chairs every year. Ordering costs are $95.00 per order and carrying costs are $3.75 per chair. What is Marina Inc. total inventory cost per year, including both carrying costs and ordering costs, if Marina Inc. orders the EOQ of office chairs?
