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You are in charge of ordering a $168.86 fluid control device for your company. The pumps...

You are in charge of ordering a $168.86 fluid control device for your company. The pumps have an annual demand of 28,500 units. Each order costs $785.11 to place. Each pump costs 12.45% to hold. If you purchase less than 1500, there is no discount; purchase 1500 to less than 3000, 7.5% discount; purchase 3000+ units and you receive a 15% discount.

1

Determine the order quantity

2

Based on #1, calculate the number of orders

3

Based on #1, calculate the average inventory

4

Based on #1, calculate the annual order cost

5

Based on #1, calculate the annual holding cost

6

Based on #1, calculate the total cost of inventory including purchase cost
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Answer #1
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1 Determine the order quantity 3000 units
2 Based on #1, calculate the number of orders 9.50 orders
3 Based on #1, calculate the average inventory 1500 units
4 Based on #1, calculate the annual order cost $           7,458.55
5 Based on #1, calculate the annual holding cost $         26,804.23
6 Based on #1, calculate the total cost of inventory including the purchase cost $4,124,867.77

Answers 2-6 BASED ON ANSWER 1:

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Calculation of Three ranges

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