(Solved): Jean-Marie Bourjolly's restaurant has the following inventory items that it orders on a weekly basi ...

Jean-Marie Bourjolly's restaurant has the following inventory items that it orders on a weekly basis. INVENTORY ITEM CASES PER WEEK Ribeye Steak 3 Lobster Tail 3 Pasta 12 Salt Napkins Tomato Sauce French Fries Pepper Garlic Powder Trash Can Liners Table Cloths Fish Fillets Prime Rib Roasts oll Lettuce Chickens Order Pads Eggs Bacon Sugar COST PER CASE 135 245 23 3 12 23 43 3 11 12 32 143 166 28 35 75 12 22 56 4 2 2 a) Which is the most expensive item using annual dollar volume? b) Which are the CItems? c) What is the annual dollar volume for all 20 items? 11 32 3 3 3 5 10 6 2 24 14 2 7 3 2 Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas' fastest-moving inventory item has a demand of 6,000 units per year. The cost of each unit is $100 and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. There are 250 working days per year. a) What is the EOQ? b) What is the average inventory if the EOQ is used? c) What is the optimal number of orders per year? d) What is the optimal number of days between any two orders? e) What is the annual cost of ordering and holding inventory? f) What is the total annual inventory cost including the cost of the 6,000 units?