Question: a) What is the EOQ? ____ units b) What is the average inventory if the EOQ is used? What would be the annual inventory holding

a) What is the EOQ? ____ units b) What is the

a) What is the EOQ? ____ units

b) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? ____ units; $_____ (round response to two decimal places).

c) Given the EOQ, how many orders would be made each year?What would be the annual order cost? _____ orders; $_____ (round response to two decimal places).

d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $_____ (round response to two decimal places).

e) What is the time between orders? _____ days (round response to two decimal places).

f) What is the reorder point (ROP)? _____ units (round response to two decimal places).

Joe Henry's machine shop uses 2,520 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 Holding cost per bracket per year Order cost per order Lead time Working days per year 2,520 $1.40 $18.25 2 days 250

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