Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas’s faskest-moving inventory iem has a demand of 5,900 units per year. The cost of each unit is $103, and the irventory carrying cost is $11 per unit per year. The average ordering oost is $29 per onder. If takes about 5 dars for an order to artive, and the demand for 1 week is 118 units. (This is a corporate operabion, and there are 250 working days per year).
a) What is the EOO? ◻ units (round your response to two decimal places).
b) What is the average inverlory if the COO is used? ◻ urits (round your response to two decimal places).
d) Whatlis The optrmal number of orders per year? ◻ orders fround your memponse to tho decimal ptacest.
d) What is the optimal number of days in between arry two orders? ◻ days (round your response to tro decima/ places).
e) What is tle wrinuat cost of ordering and hoiding ilventory? ◻ per year fround your response to feo decimar ptecest.
f) What is the totai annual irventory cost including the cost of the 5,900 units? $ ◻ per year (round your response to tho decimal places)
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