Question: Creative Equipment Components purchased annually 5 , 0 0 0 Cost per component $ 8 0 Production days per year 3 6 0 Ordering cost

Creative Equipment Components purchased annually 5,000 Cost per component $80 Production days per year 360 Ordering cost (per purchase order) $10 Annual carrying cost per component $40 Normal delivery time (days)2 Delivery Time (Days) Percentage of Occurrence 275310455565100 Data for Part 2: Acceptable risk of stocking out 10% Data for Part 3: Acceptable risk of stocking out 5% Data for Part 4: Acceptable risk of stocking out 5% Data for Part 5: Ordering cost (per purchase order) $2.50

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