Question: A) What is the EOQ? B) What is the average inventory if the EOQ is used? C) Given the EOQ, how many orders would be

A) What is the EOQ? B) What is the average A) What is the EOQ?

B) What is the average inventory if the EOQ is used?

C) Given the EOQ, how many orders would be made each year?

D) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?

E) What is the time between orders?

F) What is the reorder point (ROP)?

Joe Henry's machine shop uses 2,540 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,540 $1.50 Holding cost per bracket per year Order cost per order $18.75 Lead time 2 days Working days per year 250

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