Thomas 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 $11 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)

Part 2a) What is the EOQ?

Part 3b) What is the average inventory if the EOQ is used?

Part 4c) What is the optimal number of orders per year?

Part 5d) What is the optimal number of days in between any two orders?

Part 6e) What is the annual cost of ordering and holding inventory?

Part 7f) What is the total annual inventory cost, including the cost of the 5,900 units?