Annual usage of an item is 60,000 units. Ordering cost is $200 per order, and carrying cost is $1.5 per unit per year.

(a) Determine the economic order quantity for this item.

(b) What is the ordering cost per year?

(c) What is the carrying cost per year?

(d) If the price of the item is $4/unit, what is the carrying cost as % per year? 2

(e) If the lead time to replenish this item is 12 days, what should be the ROP if there are 250 days in a year. 4

(f) What is the inventory turnover.