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homas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest - moving inventory

homas 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
$96.11,
and the inventory carrying cost is
$9.88
per unit per year. The average ordering cost is
$29.16
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).
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