Question: #6. The Demand for the GT Notebook computer is 1,200 units per year. Each Notebook computer costs $1,000 and the company has a holding cost

#6. The Demand for the GT Notebook computer is

#6. The Demand for the GT Notebook computer is 1,200 units per year. Each Notebook computer costs $1,000 and the company has a holding cost of 20% of unit cost per year. Order cost is $1200 per order. The manager determined EOQ by using the following equation. (20 pt) 2DS Q* = D: Annual Demand; H: Holding Cost; S: Order Cost H (1) Calculate the EOQ (5 pt) (2) When using the EOQ, what is the number of orders per year? (5 pt) (3) When using the EOQ, what is the sum of annual holding cost and ordering cost? (5 pt) (4) When using the EOQ, what is the average flow time? (Hint: Use the little's Law) (5 pt)

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