Question: Southeastern Bell stocks a certain switch connector at its centrai warehouse for supplying field service offices. The yearly demand for this connector is 15,000 units.

Southeastern Bell stocks a certain switch connector at its centrai warehouse for supplying field service offices. The yearly demand for this connector is 15,000 units. Southeastern estimates it annual holding cost for this switch to be $25 per unit. The cost to place an order from the supplier is $75. The company operates 300 days per year and the lead time to receive an order from the supplier is 2 working days, Make sure you show your work for any credit! 1. Determine the economic order quantity, 2. What is "economic" about that order quantity? 3. What is the average cycle inventory level at EOQ? 4. How many orders would be placed at the EOQ? 5. Calculate the annual holding cost? 6. Calculate the annual ordering cost? Include the question number in your answer. Edit View invert Format Tools Table 12pt Paragraph B I VA 2 Tv G Search or type URL R $ 3 4 5 6 & 7 00 0) 0 E R T Y U 0

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