Annual inventory holding cost plus annual ordering cost

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1. Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 13 each and are ordered in quantities of 1,032 units. Annual demand is 6,002 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $40. Calculate the number of orders place per year.

2. Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 14 each and are ordered in quantities of 1,302 units. Annual demand is 7,218 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $56. Calculate the average inventory level.

3. Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 10 each and are ordered in quantities of 1,179 units. Annual demand is 5,577 heat sinks, the annual inventory holding cost rate is $1 per unit, and the cost to place an order is estimated to be $57. Calculate the total annual inventory holding cost plus annual ordering cost.

Reference no: EM132232223

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