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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomass fastest - moving inventory
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomass fastestmoving inventory item has a demand of units per year. I he cost of each unit is $ and the inventory carrying cost is $ per unit per year. The average ordering cost is $ per order: It takes about days for an order to arrive, and the demand for week is units. This is a corporate operation, and there are working days per year
a What is the EOQ? units round your response to two decimal places
b What is the average inventory if the EOQ is used? units round your response to two decimal places.
C What is the optimal number of orders per year?
orders round your response to two decimal places
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