Question: s you! Question 1 10 F Barbara is a purchasing agent for South Valve Company. South Valve sells industrial valves and fluid control devices. One

s you! Question 1 10 F Barbara is a purchasing agent for South Valve Company. South Valve sells industrial valves and fluid control devices. One of the most popular vales is the Southern, which has an annual demand of 8,000 units. The cost of each valve is $60, and the inventory carrying cost is estimated at 10% of the cost of each valve. Barbara has done research of the costs involved in placing an order for any of the valves that South Valve stocks, and she concluded that the average ordering cost is $30 per order. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during this time, the demand per week for the Southern valve is 160. D = 8,000 units; Ch = 10% of $60 = $6; C. = $30 Questions: 1. What is the EOQ? 2. What is the reorder point? 3. What is the average inventory? 4. What is the annual holding cost? 5. How many orders per year would be placed? 6. What is the annual ordering cost? Question #1 [Choose Question 2 [Choose)

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