Reference no: EM13100621

A store faces a demand for one of its popular products at a cosntant rate of 4,500 units per year. It costs the store $120 to process an order to replenish stock and $30 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 14 working days after an order is placed. The sotre sells the product for $210 per unit. At the moment the store uses an order quantity of 450 units. Assume EOQ model assumptions are satisfied and 300 days a year.

If there are two blank lines in any question, then you must put one of the following words in the second line: units, dollars, days, year, orders per year, dollars per year, units per order.

Answer the following questions:

To fulfill the demand, the store must place __________ orders per year.
The average inventory level ___________ ________________.
The length of an inventory cycle is ___________ _______________.
The annual ordering cost is______________ _________________.
The annual holding cost is_________________ __________________.
The time between any two orders is ______________days.
The optimal order quantity is________________ ________________.
The optimal annual holding cost is_________________ _______________.
The optimal number of orders per year is ___________________.