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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