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all of the other questions are correct I just need help with part e (annual cost of ordering and holding inventory) using the numbers I
all of the other questions are correct I just need help with part e (annual cost of ordering and holding inventory) using the numbers I already found.
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 $104, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $31 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? two decimal places). units (round your response to c) What is the optimal number of orders per year? two decimal places). orders (round your response to d) What is the optimal number of days in between any two orders? response to two decimal places). days (round your e) What is the annual cost of ordering and holding inventory? $ per year (round your response to two decimal places) Step by Step Solution
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