Joe Henry's machine shop uses2,460brackets during the course of a year. These brackets are purchased from a supplier90miles away. The following information is known about the brackets: Annual demand2,460Holding cost per bracket per year$1.55Order cost per order$19.50Lead time2 daysWorking days per year250Part 2a)What is the EOQ?enter your response hereunits (round your response to two decimal places).Part 3b)What is the average inventory if the EOQ is used?enter your response hereunits (round your response to two decimal places). What would be the annual inventory holding cost?$enter your response here(round your response to two decimal places).Part 4c)Given the EOQ, how many orders will be made annually?enter your response hereorders (round your response to two decimal places). What would be the annual order cost?$enter your response here(round your response to two decimal places).Part 5d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?$enter your response here(round your response to two decimal places).Part 6e)What is the time between orders?enter your response heredays (round your response to two decimal places).Part 7f)What is the reorder point (ROP)?enter your response hereunits (round your response to two decimal places).

According to our guidelines, we are supposed to answer only three sub-parts if there are multiples…

Answered: What is the EOQ? enter your response…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

a)	What is the EOQ? enter your response here units (round your response to two decimal places).

b)	What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places).
	What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places).

c)	Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places).
	What would be the annual order cost? $enter your response here (round your response to two decimal places).

d)	Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $enter your response here (round your response to two decimal places).