answer 12.12 and 12.13

b) Why is this number important to Duncan! .. 12.12 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 $100, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 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.) a) What is the EOQ? b) What is the average inventory if the EOQ is used? c) What is the optimal number of orders per year? d) What is the optimal number of days in between any two orders? a) c) What is the annual cost of ordering and holding inventory? 1) What is the total annual inventory cost, including cost of the c) 6,000 units? PX .. 12.13 Joe Henry's machine shop uses 2,500 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: ass has hol duc ture a) b) Annual demand: 2,500 Holding cost per bracket per year. $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250 a) Given the above information, what would be the economic order quantity (EOQ)? b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost? c) Given the EOQ. how many orders would be made each year? What would be the annual order cost? d) Given the EOQ, what is the total annual cost of managing the inventory? e) What is the time between orders? 1) What is the reorder point (ROP)? PX d) v puter andc curre of hig