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It makes science I need to buy LED lighting for your science. You expect to use $250,000 strands of LED lights this year based on past usage. replace a purchase order, administrative costs to manage that order are $200. LED light strands cost $20 each and your inventory holding rate is 20%. lead time is 3 days and there are 360 days/year.

calculate the following and round answers to the nearest whole number.

a) What is the Annual Order Cost? b) What is the total Annual Inventory Cost? c) What would happen to the TAIC if your LED supplier now imposes a minimum order quantity of 25,000? -Inventory Holding Costs will (increase/decrease) to $___ -Order Costs will (increase/decrease) to $___ -So, TAIC will (increase/decrease) by $___

CORRECTED: You make signs and need to buy LED lighting for your signs. You expect to use 250,000 strands of LED lights this year based on past usage. When you place a purchase order, administrative costs to manage that order are $200. LED light strands cost $20 each and your inventory holding rate is 20%. Lead time is 3 days and there are 360 days/year.