Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.

$$

$$Thomas$\text{'}$s fastest

$-$

moving inventory item has a demand of

$6$

$1$

$0$

$0$

$$units per year. The cost of each unit is

$$

$

$$

$1$

$0$

$2$

$,$

$$and the inventory carrying cost is

$$

$

$1$

$1$

$$per unit per year. The average ordering cost is

$$

$

$2$

$9$

$$per order. It takes about

$5$

$$days for an order to

$$

$$arrive$,$ and the demand for

$1$

$$week is

$1$

$2$

$2$

$$units$.$

$$

$($

This is a corporate

$$

$$operation$,$ and there are

$2$

$5$

$0$

$$working days per

$$

$$year

$)$

eoq $=179\mathrm{.}34$ What is the average inventory if the EOQ is$$ used?

$$

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