Question: 5 . ( For 1 5 points ) Christina Filtering Inc. uses 1 2 6 0 0 ( Yearly Demand ) air filters during the

5.(For 15 points)Christina Filtering Inc. uses 12600(Yearly Demand) air filters during the span of a year, and this
usage is relatively constant throughout the year. These air filters are bought from a supplier 30 miles away for
$30 each, and it takes 8 days from order to receipt. The carrying cost per unit per year is 20% of the unit cost and
the ordering cost per order is $65. There are 280 working days per year.
a. What is the Economic Order Quantity (round to the nearest whole number)?
b. What is the average inventory?
c. About how many orders per year would be placed (round to the nearest whole number)?
d. What is the total Annual inventory cost (Not just the total annual ordering and holding, but also including
purchased cost of air filter)?
e. What is the Lead-time?
f. What is the Re-ordering point? What does it mean in term of ordering filters?

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