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120 WILS] Ibrahim is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Ibrahim's fastest-moving inventory item

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120 WILS] Ibrahim is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Ibrahim's fastest-moving inventory item has a demand of 5,000 units per year. The cost of each unit is $90, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $35 per order. It takes about 1 week for an order to arrive, and the demand for 1 week is 125 units. (This is a corporate operation, and there are 250 working days per year) (a) To minimize cost, how many units should be ordered each time an order is placed? (b) What is the average inventory if the EOQ is uses? (c) What is the optimal number of orders per year? (d) What is the optimal number of days in between any two orders? (e) What is the annual cost of ordering and holding inventory? (f) What is the total annual inventory cost, including cost of 5,000 units? (g) What is the reorder point? (h) If holding costs were to increase by $2 per unit per year, how much would that affect the minimum total annual cost

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