Question: Custom Computers, Inc. assembles custom home com- puter systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300

Custom Computers, Inc. assembles custom home com- puter 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. Cal- culate 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.

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