Assignment:
ABC Co. purchases an item. The annual demand for this item is 60000 units. The ordering cost is $40 per order. The holding cost is $5 per unit per year. The lead time for this item is 6 days. Assume 250 working days per year. Find:
a) EOQ
b) Average inventory
c) Optimal Number of orders per year
d) Annual ordering cost
e) Total Annual Inventory cost
f) ROP
Provide complete and step by step solution for the question and show calculations and use formulas.