Question: Tim is a purchasing agent for computer store and has recently added a new computer model to store's catalog. Current sales are running at about

Tim is a purchasing agent for computer store and has recently added a new computer model to store's catalog. Current sales are running at about 13 computers per week. Time purchases the computer directly from the manufacturer at a unit cost of $ 3000 and the shipments take about a week to arrive. Tim routinely uses EOQ model to determine the stock level and buying frequency. He has estimated that his inventory carrying cost is 20% and ordering cost is $ 75 per order. a. Currently, Tim is ordering 26 models per order; what would be his ordering frequency and what is total cost to him. b. Is this consistent with the EOQ model? If not, what should he be ordering; what's lot size, how frequently should he order and what's annual inventory cost

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