Question: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,640 heat sinks, the annual
Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,640 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $59. Bill Maze, recently hired by Custom Computers, Inc., has suggested using the economic order quantity for the heat sinks.
Calculate economic order quantity.
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