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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
thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastestmoving inventory item has a demand of units per year. the 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 oder 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?
B What is the average inventory if the EOQ is used?
C What is the optimal number of orders per year?
D What is the optimal number of days in between any two orders?
E What is the annual cost of ordering and holding inventory?
F What is the total annual inventory cost, including cost of the units?
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