Question: Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand is 7500 fan assemblies, the annual

Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60.

What is the optimal order quantity (rounded to the nearest integer)? (You found this number above in Part f of Problem 1) = 474

Assuming that the fan assemblies are ordered in quantities equal to the optimal order quanitity, calculate the following:

f. What does Custom Computers save per year in Inventory Costs by following the EOQ model? THE ANSWER IS 1402.63 BUT I DO NOT KNOW HOW TO GET THERE

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