Question: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive the order. For this subassembly, find
a) Economic order quantity
b) Annual holding cost
c) Annual ordering cost
d) Reorder point