a) What is the EOQ? _________________________ units (round your response to two decimal places).

b) What is the average inventory if the EOQ is used?__________units (round your response to two decimal places).

c) What is the optimal number of orders per year?_____________orders (round your response to two decimal places).

d) What is the optimal number of days in between any two orders?_________days (round your response to two decimal places).

e) What is the annual cost of ordering and holding inventory?_____________per year (round your response to two decimal places).

f) What is the total annual inventory cost, including the cost of the 6000 units? _______________ per year ((round your response to two decimal places)

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,000 units per year. The cost of each unit is $101, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is a corporate operation, and there are 250 working days per year)