Question: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,280 units.

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,280 units. Annual demand is 5,120 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $55. (a) Calculate the following: (a) Average inventory level units {bl The number of orders placed peryear orders (c) Thr total annual inventory holding cost $ (d) The total annual ordering cost $ (e) The total annual cost $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
