Question: 5 . ( For 1 5 points ) Christina Filtering Inc. uses 1 2 6 0 0 ( Yearly Demand ) air filters during the
For pointsChristina Filtering Inc. uses 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 miles away for
$ each, and it takes days from order to receipt. The carrying cost per unit per year is of the unit cost and
the ordering cost per order is $ There are 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 Leadtime?
f What is the Reordering point? What does it mean in term of ordering filters?
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