Aberwald Corporation
Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate.Fixed ordering costs are R200 per order; the purchase price per chip is R25; and the firm's inventory carrying cost is equal to 20 percent of the purchase price.(Assume a 360-day year.)
-Refer to Aberwald Corporation.If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering and carrying inventory?

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The Answer of Aberwald Corporation
Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate.Fixed ordering costs are R200 per order; the purchase price per chip is R25; and the firm's inventory carrying cost is equal to 20 percent of the purchase price.(Assume a 360-day year.)
-Refer to Aberwald Corporation.If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering and carrying inventory?

Aberwald Corporation Aberwald Corporation Expects to Order 126,000 Memory Chips for Inventory