Problem 7-15 (Algo) Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $24 per unit. They send orders electronically to the manufacturer, costing $34 per order and they experience an average lead time of seven days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is four units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $24 per unit They send orders efectronically to the manufacturer, costing $34 per order and they experience an average lead time of seven days for each order to arrive from the manufactures. Their inventory carrying cost is 20 percent. The average daly demand for the figurines is four units per day. They are open for business 250 days a year Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time (Do not round intermediate calculations. Round up your answer to the next whole number.) b. How many orders will they place in a year? c. What is the average inventory? (Round your answer to 1 decimal place.)