Problem $7-15($Algo$)$

Michigan State Figurine Incorporated $($MSF$)$ sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $$23$

per unit. It sends orders electronically to the manufacturer, costing $$35$ per order, and it experiences an average lead time of six days

for each order to arrive from the manufacturer. Its inventory carrying cost is $20$ percent. The average daily demand for the figurines is

three units per day. MSF is open for business $250$ days a year. Answer the following questions:

a$.$ How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

b$.$ How many orders will it place in a year?

c$.$ What is the average inventory?

d$.$ What is the annual ordering cost?

e$.$ What is the annual inventory carrying cost?

Complete this question by entering your answers in the tabs below.

How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

Note: Do not round intermediate calculations. Round up your answer to the next whole number.

Number of unitsMichigan State Figurine Incorporated $($MSF$)$ sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $$23$ per unit. It sends orders electronically to the manufacturer, costing $$35$ per order, and it experiences an average lead time of six days for each order to arrive from the manufacturer. Its inventory carrying cost is $20$ percent. The average daily demand for the figurines is three units per day. MSF is open for business $250$ days a year. Answer the following questions:

How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

How many orders will it place in a year?

What is the average inventory?

What is the annual ordering cost?

What is the annual inventory carrying cost?