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how to solve this whole question? a) What is the EOQ? units (round your response to two decimal places). Part 3 b) What is the
how to solve this whole question?
Thnas 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 5,900 units per year. The cost of each unit is \$102, and the inventory carrying cost is $9 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 118 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).
Part 3
b) What is the average inventory if the EOQ is used? units (round your response to two decimal places).
Part 4
c) What is the optimal number of orders per year? orders (round your response to two decimal places).
Part 5
d) What is the optimal number of days in between any two orders? days (round your response to two decimal places).
Part 6
e) What is the annual cost of ordering and holding inventory? $enter your response here per year (round your response to two decimal places).
f) What is the total annual inventory cost, including the cost of the units? $enter your response here per year (round your response to two decimal places).
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