# Question

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Calculate the following:

(a) Average inventory level

(b) The number of orders placed per year

(c) The total annual inventory holding cost

(d) The total annual ordering cost

(e) The total annual cost

(a) Average inventory level

(b) The number of orders placed per year

(c) The total annual inventory holding cost

(d) The total annual ordering cost

(e) The total annual cost

## Answer to relevant Questions

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