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 TBOtOO (TBO when using the EOQ)