Paper Details
Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Calculate the following:
(a) Average inventory level
(b) The number of orders placed per year
(c) The total annual inventory holding cost
(d) The total annual ordering cost
(e) The total annual cost
