Question: Problem #2 Joe Henry's machine shop uses 2,500 brackets during the course of a year. The brackets are purchased from a supplier 90 miles away.

Problem #2 Joe Henry's machine shop uses 2,500

Problem #2 Joe Henry's machine shop uses 2,500 brackets during the course of a year. The brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual Demand Holding cost per bracket per year Order cost per order Lead time | Working days per year 2,500 $1.50 $18.75 2 days 250 a. Given the above information what would be the economic order quantity (EOQ)? b. Given the EOQ, what would be the average inventory? What would be the annual inventory holding costs? C. Given the EOQ, how many orders would be made each year? What would be the annual ordering cost? d. Given the EOQ, what is the total annual cost of managing the inventory? e. What is the time between reorders? f. What is the reorder point (ROP)

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