Question: 3 We use 2,750 per year of a certain subassembly that has a purchase cost of $450, and an annual holding cost of $500 per unit. Each order placed costs us $150. We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order. For this subassembly, find:

(a) Economic order quantity

(b) Annual holding cost (using EOQ)

(c) Annual ordering cost (using EOQ)

(d) Reorder point