6.1

1. Suppose cCIT purchases a $4 per unit part from a supplier. The supplier takes one week to deliver the order. It uses the part to assemble laptop computers. On average, you use 50,000 units of this part each year. Every time you order this particular part, you incur a sizable ordering cost of $800 regardless of the number of parts you order. CCIT also assumes an annual cost of capital is 2% per year and physical holding cost is 5% per year. a) How much is an ordering cost (s)? b) How much is the unit cost? c) How much is the annual inventory holding cost per unit? d) How long is the lead time? 2. Centura Health hospital incurs a cost of $130 regardless of the quantity purchased each time it places an order for and receives IV Starter Kits. The material cost is $3, and the weekly outflow rate is 600 . There are 52 weeks in a year. Currently, they order 6,000 units at time. The physical holding costs of one unit of medical supply is 5% per year. The annual cost of capital is 25%. a) How much is an ordering cost (s)? b) What is the annual demand? c) How much is the total annual ordering cost for Centura? d) What is the cycle inventory (loca)? e) How much is the annual holding cost per unit? 1) How much is the total annual holding cost for Centura? B) How much is the annual total cost (TC) for Centura including the materials cost