Calculate the average number of orders per month and order quantity for each component. In addition, calculate the total holding and ordering costs.

A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The  Number of work days is 250 per year.   What is the annual setup cost? What is the annual holding cost?  What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?

KGU company sells shoes whose daily demand is 100 units. The inventory holding cost is $2 per unit per year. The company also spends $20 per unit to process order. It takes 6 days from the time of reorder to the stocking of the inventory. The company keeps a safety stock that can cover twice the inventory. What is the ideal order quantity for KGU to purchase to minimize inventory costs? What is the ideal level of inventory at which KGU should pace a purchase order?

Central University has a demand level of 80 units per day, for a particular toner cartridge in the student computer labs each year. The cost of each unit is 10.95. The purchasing director of the university estimates the ordering cost at $45 and thinks that the university can hold this type of inventory at an annual storage cost of 22%. Operating days are 250. The lead time is for orders to arrive is four days. a. To minimize the total annual cost of purchasing and carrying how many toner cartridges should be ordered? [Select] b. What are the numbers of orders that need to be placed? [Select] c. What is the total cost of managing the inventory? $ [Select] d. What are the number of days in between orders? [Select] e. What is the re-order point? [Select] f. What is the total cost, including the cost of the cartridges? $ [Select]

ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False

Kaniri Global Imports (a retail store) sells artisan greeting cards. The owners search for localartists from around the world from whom to buy their greeting card inventory. The followinginformation is available to you for this problem:Demand/Sales = 110 cases of cards per yearOrdering or Setup Cost = $25 per orderCarrying Charge = 18% per yearUnit Cost = $150 per caseAnswer the following questions and be sure to show your computations. You can use whateversymbol you need for square root, if typing in Word.1. How many cases should be ordered at a time? (This number will be the EOQ). Computeto two decimal places. In reality they would round, but for this problem keep the twodecimal places.2. How many times should Kaniri order in a year? Do not answer in terms of how manydays or months, but rather how many times per year. Round your answer up to the nexthighest whole number.3. Answer all three:a. What is the annual cost of ordering the cards?b. What is the annual cost of carrying the…