Inventory Audit $-$ EOQ

Readers Warehouse is a book distributor that sells books to numerous retail stores. Evan Lowe, an MBA student, did a project for an Operations $/$ Supply Chain class that involved auditing a representative sample of their inventory. To start, he chose just one book, Game of $($Dry$)$ Scones: Book $1,$ gathered data on it$,$ and compared their current policies and costs with his recommended one. He would then verify the data and collect information on about $30$ more items. After analyzing their spreadsheets and having long discussions about their costs, here is the data he collected for the first item. The distributor operates $52$ weeks per year.

Game of $($Dry$)$ Scones

Demand $=6,530$ units $/$ week

Cost per unit $=$ $$15\mathrm{.}65$

Cost of holding inventory $=7\mathrm{.}0\%$ annually

Fixed ordering cost $=$ $$16$

Current order size $=5,000$

Questions

$($a$)$ What is the total relevant cost of inventory $($annual fixed cost of ordering $+$ annual holding cost$)$ for this item when using their current order size?

Cost of inventory $=$

$($b$)$ What is the EOQ?

$($c$)$ How many orders per year would they place if they use the EOQ?

$($d$)$ What is the average inventory if they use the EOQ?

$($e$)$ What is the total relevant cost of inventory $($annual fixed cost of ordering $+$ annual holding cost$)$ when using the EOQ?

$($f$)$ What is the cycle length $($in days$)$ if they use the EOQ?

$($g$)$ What is the percent savings in total relevant cost if they change from their current order quantity to the EOQ?