Problem:
A store faces a demand for one of its popular products at a cosntant rate of 4,500 units per year. It costs the store $120 to process an order to replenish stock and $30 per unit per year to carry the item in inventory. A shipment from the supplier is typically received 14 working days after an order is placed. The sotre sells the product for $210 per unit. At the moment the store uses an order quantity of 450 units. Assume EOQ model assumptions are satisfied and 300 days a year.
If there are two blank lines in any question, then you must put one of the following words in the second line: units, dollars, days, year, orders per year, dollars per year, units per order.
Required:
1) To fulfill the demand, the store must place __________ orders per year.
2) The average inventory level ___________ ________________.
3) The lenght of an inventory cycle is ___________ _______________.
4) The annual ordering cost is______________ _________________.
5) The annual holding cost is_________________ __________________.
6) The time between any two orders is ______________days.
7) The optimal order quantity is________________ ________________.
8) The optimal annual holding cost is_________________ _______________.
9) The optimal number of orders per year is ___________________.
Provide thorough explanation of every question given in the problem.