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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 5,750 units per year. The cost of each unit is ?$103?, and the inventory carrying cost is ?$11 per unit per year. The average ordering cost is ?$29 per order. It takes about 5 days for an order to? arrive, and the demand for 1 week is 115 units.? (This is a corporate? operation, and there are 250 working days per? year).
?a) What is the? EOQ? _____ units ?(round your response to two decimal? places).
?b) What is the average inventory if the EOQ is? used? ____ units ?(round your response to two decimal? places). ?c) What is the optimal number of orders per? year? nothing orders ?(round your response to two decimal? places). ?
d) What is the optimal number of days in between any two? orders? ______ days ?(round your response to two decimal? places). ?
e) What is the annual cost of ordering and holding? inventory? ?$_____ per year ?(round your response to two decimal? places). ?
f) What is the total annual inventory? cost, including the cost of the 5,750 ?units? ?$_____ per year ?(round your response to two decimal? places).
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