Question: 120. Custom computers, Inc. assembles custom home computer systems. The heat sinks needed are bought from $12 each and are ordered in ouantitiers of 1,300

120. Custom computers, Inc. assembles custom home computer systems. The heat sinks needed are bought from $12 each and are ordered in ouantitiers of 1,300 units. Annual demand is 3,200 heat sinlrs, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to he $50. Calculate the following: a. Average inventor}r level: h. Number of orders placed per year: c. Total annual inventor},r holding cost: cl. Total annual ordering cost: e. Total annual cost: 1211. Bill Maze, recently.1 hired by Custom Computers, Inc. has suggested using the economic order quantity for the heat sinks. From problem 9: Unit purchase price [p]: $12 Annual demand {D}: 5,200 units Order quantity,r {Q}: 1,300 units Annual unit holding cost: $3.00 Order cost: $50.00 Using the inionnation in Problem 0, calculate the following: a. Economic order quantitj.r {ESQ}: b. Average inventor].r level: c. Number of orders placed per year: cl. Total annual ordering cost: e. Total annual holding cost: E. Total annual cost
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
