Question: b) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? c) Given the EOQ, how many

b) What is the average inventory if the EOQ is

b)

What is the average inventory if the EOQ is used? 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 (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 2,460 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 2,460 $1.65 $19.50 2 days 250 a) What is the EOQ? 19.68 units (round your response to two decimal places)

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