Question: Lead time: is the time it takes the order to arrive. 01) A machine shop uses 2,500 brackets during a year. These brackets are purchased

Lead time: is the time it takes the order to arrive. 01) A machine shop uses 2,500 brackets during a year. These brackets are purchased from a supplier 90 miles away. The following information is known a bout the brackets: Annual Demand 2,500 Holding cost per bracket per year $ 1.50 Order cost per order $ 18.75 Lead time 2 days Working days per year 250 a) What is the economic order quantity? b) What is the average inventory? What is the annual inventory holding cost? c) How many orders should be made each year? What is the annual order cost? d) What is the total inventory annual cost? e) What is the time between orders? f) What is the reorder point? (After how many days of receiving an order should the shop replace a new order?)

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