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Ross White's machine shop uses 2 500 Brackets throughout the course of a year and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for 15 MU each as well as the lead time is 2 days. The holding cost per bracket per year is 1.50 MU (or 10% of the unit cost). The ordering cost per order is 18.75 MU. There are 250 working days per year.a) What is EOQ? b) Given the economic order quantity, what is the average inventory? c) What is the total annual holding cost? d) In minimizing cost, how many orders would be made each year? e) What would be the total annual ordering cost? F) Given the economic order quantity, what is the total annual cost (including purchase cost? g) What is the time between orders? h) What is the reorder point?
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