Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,410 units. Annual demand is 5,640 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $49.

Calculate the following:

(a) Average inventory level 705 units

(b) The number of orders placed per year 4 orders

(c) The total annual inventory holding cost $2,820.00

(d) The total annual ordering cost $196

(e) The total annual cost $3,016.00

Custom Computers is considering a new ordering policy. The new order quantity would be 880 heat sinks. Calculate the following for new order quantity.

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

(b) The number of orders placed per year (Round your answer to 2 decimal places, e.g.,50.12) enter a number of orders rounded to 2 decimal places orders.

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

(d) The total annual ordering cost (Round your answer to 2 decimal places, e.g.,50.12) $enter a dollar amount rounded to 2 decimal places

(e) The total annual cost (Round your answer to 2 decimal places, e.g.,50.12) $enter a dollar amount rounded to 2 decimal places

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