Question: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,180 units.

Custom Computers, Inc. assembles custom home

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,180 units. Annual demand is 4,720 heat sinks, the annual inventory holding cost rate is $2 per unit, and the cost to place an order is estimated to be $51. Custom Computers is considering a new ordering policy. The new order quantity would be 860 heat sinks. Calculate the following for new order quantity. (a) Average inventory level units. (b) The number of orders placed per year (Round your answer to 2 decimal places, e.g.,50.12) orders. (c) The total annual inventory holding cost $ (d) The total annual ordering cost (Round your answer to 2 decimal places, e.g.,50.12) $ (e) The total annual cost (Round your answer to 2 decimal places, e.g.,50.12) $

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