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Joe henry 's machine shop uses 2500 brackets during the course of a year. Theses brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:
Annual demand - 2500Holding cost per bracket per year $1.5Order cost per year $18.75Lead time- 2 daysWorking days per year - 250
a. Given the above information, what would be the economic order quantity (EOQ)?
b. What would be the annual inventory holding and order cost?
c. How many orders would be made each year?
d. Given the EOQ, what is the total annual cost of managing the inventory?
e. What is the time between orders?
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