An electronic manufacturer purchases microprocessors at a cost of $35 each. Throughout the year, it buys 150,000 units of this microprocessor. Each order is charged $250 (setup and delivery cost). The order quantity is 25,000 units. The annual percent holding cost is 25%. The lead time is 6 weeks. a. How many units of the microprocessors are held in the cycle inventory? b. How many units of the microprocessors are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. What is the EOQ? f. What is the TBOEOQ (TBO when using the EOQ)? Example 2 A bakery uses 25,000lbs. of flour per year. The mill charges a delivery cost of 75$ per order. The delivery lead time is 1 week. Due to special storage requirements, it costs the bakery $1000 to store 100lbs. of flour during a year. The bakery orders 1,000lbs. in each order. a. How many lbs. of flour are held in the cycle inventory? b. How many lbs. of flour are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. What is the EOQ? f. What is the TBOEOQ (TBO when using the EOQ)? Example 3 The office manager of a large corporation has to manage the supply of printer toner cartridges for the office in Jacksonville. The office has 250 printers that use the same toner cartridge. Each printer uses two cartridges per year on average. The cartridge supplier charges $100 shipping costs per order. The lead time for business customers is 4 weeks. It costs the company $15 to store one unit for a year. With its current policy, the manager places two orders per year. a. How many units of cartridges are held in the cycle inventory? b. How many units of cartridges are held in the pipeline inventory? c. What is the inventory holding cost per year? d. What is the ordering cost per year? e. How would the total cost change if the manager would place 4 orders per year instead of 2 ? f. What is the EOQ? g. What is the TBOEOQ (TBO when using the EOQ)