Custom Computers, Inc. assembles custom home computers. Annual demand for heat sinks is 5,200 units, the annual inventory cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Lead time is 2 weeks.
A) What is the economic order quantity for the heat sinks?
B) What is the total annual cost (ordering + holding) of this plan?
C) What is the reorder point for this plan?