Calculate average inventory level

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Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each and are ordered in quantities of 1500 units. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60. Calculate the following:

a. Average inventory level

b. The number of orders placed per year

c. The total annual inventory holding cost

d. The total annual ordering cost

e. The total annual cost

Reference no: EM1392983

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