Question: Question 1(25pts). Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory

 Question 1(25pts). Thomas Kratzer is the purchasing manager for the headquarters

Question 1(25pts). Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,000 units per year. The cost of each unit is 5100 , and the inveritory carrying cost is 510 per unit per year, The average ordering cost is $30 per order. It taikes about 5 days for an order to arrive, and the demand for 1 welk is 120 units. (This is a corporate operation, and there are 250 working days per year.) a) What is the EOQ? b) What is the optimal number of orders per year? c) What is the optimal number of days in between any two orders? d) What is the reorder point level? Explain the solution. e) What is the annual cost of ordering and holding inventary? Q=H2DS TC=2QH+QD=5

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