Question: ( 1 5 pts ) Joe Henry's machine shop uses 2 , 5 0 0 brackets during the course of a year. These brackets are

(15 pts) Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are
purchased from a supplier 90 miles away. The following information is known about the brackers:
a.(2 pts) Given the above information, what would be the economic order quantity (EOQ)?
b.(2 pts) Given the EOQ what would be the annual inventory holding cost?
c.(2 pts) Given the EOQ what would be the annual ordering cost?
d.(2 pts) Given the EOQ, what is the total annual inventory cost including purchasing costs?
e.(4 pts) Given the following price breaks for purchasing the item, what would be the optimal order
quantity?
f.(3 pts) Given Suppose the annual demand is normally distributed with standard deviation of 500.
What reorder point should they use to achieve 90% service level?

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