Question: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,350 units.

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,350 units. Annual demand is 5,400 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $59.

(a)

Calculate the following:

(a) Average inventory level enter a number of units units

(b) The number of orders placed per year enter a number of orders orders

(c) Thr total annual inventory holding cost $enter a dollar amount

(d) The total annual ordering cost $enter a dollar amount

(e) The total annual cost $enter a dollar amount

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(b)

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(c)

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