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lbo 6863056 INVENTORY COSTING For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on

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lbo 6863056 INVENTORY COSTING For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information: nnual demand in units number of u,der- annual demand ays used per year 250 EOO ead time, in days Ordering costs Annual unit carrying costs 10 $100 reorder po'nt% annual demand $20 x (e Required: Determine the (a) EOQ, (b) average inventory, (c) orders per year, (d) average daily demand, (e) reorder point, () annual ordering costs, and (g) annual carrying costs

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