Question: Joe Henry’s machine shop uses 2,500 brackets during the course of the year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets.

Annual demand: 2,500

Holding cost per bracket per year $ 1.50

Order cost per order: $18.75

Lead Time: 2 days

Working days per year: 250

a) Given the above information, what would be the economic order quantity(EOQ)

b) Given the EOQ, what would be the average inventory?

c) Given the EOQ, how many orders would be made each year? What would be the annual order cost

d) Given the EOQ, what is the total annual inventory cost?

e) What is the time between orders

f) What is the reorder point (ROP)