Question: show works please Practice Problem 1 Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand

show works please Practice Problem 1 Custom show works please

Practice Problem 1 Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60. Assuming that the fan assemblies are ordered in quantities of 1500 units, calculate the following: a. Average inventory level b. The number of orders placed per year c. The total annual inventory holding cost d. The total annual ordering cost e. The total annual cos f. Custom Computers, Inc is not ordering at an optimal level. How many units should they order if they want to minimize their total annual cost? (in other words, What is Q*?) 474

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