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Calculate economic order quantity-average inventory level

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Reference no: EM131118401

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,000 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $56. Bill Maze, recently hired by Custom Computers, Inc., has suggested using the economic order quantity for the heat sinks. Calculate economic order quantity. units (Round your answer to 2 decimal places, the tolerance is +/-0.01.) LINK TO TEXT Calculate average inventory level. units (Round your answer to 2 decimal places, the tolerance is +/-0.02. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate number of orders placed per year. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual ordering cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual holding cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual cost. $ (Round your answer to 2 decimal places.)

Reference no: EM131118401

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