Given the following information for an important purchased part, compute the

(a) EOQ,

(b) Total purchase cost

(c) Annual holding cost

(d) Annual order cost

(e) Annual total cost

(f) Reorder point

(g) Number of orders placed per year

(h) Time between orders.

(i) Use Microsoft Excel to plot the cost curves (annual holding cost, annual order cost and annual total cost) on the vertical axis, and the order quantity on the horizontal axis.

Annual requirements (R) = 5,000 units

Order cost (S) = $100 per order

Holding rate (k) = 20%

Unit cost (C) = $20 per unit

Lead time (LT) = 6 days

Number of days per year= 360 days