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Please explain why the answer for option C is 3,540, and for option D, the answer is 95 units. Help me solve this All parts
Please explain why the answer for option C is 3,540, and for option D, the answer is 95 units. Help me solve this All parts showing Southeastern Bell stocks a certain switch connector at its central warehoue for supplying field service offices. The yearly demand for these connectors is 14,185 units. Southeastern estimates its annual holding cost for this item to be $23.82 per unit. The cost to place and process an order from the supplier is $74.37. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? Q=H2DS=298 units (round your response to the nearest whole number). b) What are the annual holding costs? Holding cost = Avg. Inventory Holding Cost per Unit =$ (round your response to the nearest whole number) c) What are the annual ordering costs? Ordering Cost = Annual Orders Cost per Order =EconomicOrderQuantityAnnualDemand Cost per Order =$3,540 ? (round your response to the nearest whole number) d) What is the reorder point? Reorder Point = Lead Time Daily Demand = Lead Time OperatingDaysperYearAnnualDemand=953 units (round your response to the nearest whole number)
Please explain why the answer for option C is 3,540, and for option D, the answer is 95 units.
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