Questions # $2(30\%)$

Given the following information for a purchased part, compute the $($a$)$ total purchase cost, $($b$)$ annual holding cost, $($c$)$ annual order cost, $($d$)$ annual total cost, $($e$)$ reorder point, $($f$)$ number of orders placed per year and $($g$)$ time between orders.

Optimal order size $($Economic Order Quantity, EOQ$)=1,558\mathrm{.}12$ units

Monthly demand $=3,500$ units

Order cost $=$ $$250$ per order

Holding cost $=$ $$8\mathrm{.}65$ per unit per year

Unit cost $=$ $$85$ per unit

Lead time $=12$ days

Number of days per year $=365$ days

$($a$)$ Total purchase cost $=$

$($b$)$ Annual holding cost $=$

$($c$)$ Annual order cost $=$

$($d$)$ Annual total cost $=$

$($e$)$ Reorder point $=$

$($f$)$ Number of orders placed per year $=$

$($g$)$ Time between orders $=$