Homework:GRADED HW 6: Ch12 - numerical problems

Question 3, Problem 12.14

Part 2 of 6

HW Score: 46.67%, 3.73 of 8 points

Points: 0.17 of 1

Save

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of

6,000

units per year. The cost of each unit is

$104,

and the inventory carrying cost is

$8

per unit per year. The average ordering cost is

$31

per order. It takes about

5

days for an order to arrive, and the demand for 1 week is

120

units. (This is a corporate operation, and there are

250

working days per year).a) What is the EOQ?

215.63215.63

units (round your response to two decimal places).b) What is the average inventory if the EOQ is used?

enter your response here

units (round your response to two decimal places).