Question 19. Part 1-6. Please show step by step how you got each answer. I will gige a rating.

a) What is the EOQ? ____ units (round your response to two decimal places)

b) What is the average inventory if the EOQ is used? _____ units (round your response to two decimal places)

c) What is the optimal number of orders per year? ______ orders (round your response to two decimal places)

d) What is the optimal number of days in between any two orders? ________ days (round your response to two decimal places)

e) What is the annual cost of ordering and holding inventory? $______ per year (round your response to two decimal places)

f) What is the total annual inventory cost, including the cost of the 5,950 units? $______ per year (round your response to two decimal places)

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastestmoving inventory item has a demand of 5,950 units per year. The cost of each unit is $98, and the inventory carrying cost is $9 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 119 units. (This is a corporate operation, and there are 250 working days per year)