Jordin​ Henry's machine shop uses 2 comma 550 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the​ brackets:
Annual demand
2 comma 550
Holding cost per bracket per year
$ 1.35
Order cost per order
$ 18.25
Lead time
2 days
Working days per year
250

Part 2
​a)
What is the​ EOQ?

262.55 units ​(round your response to two decimal​ places).
Part 3
​b)
What is the average inventory if the EOQ is​ used?

131.28 units ​(round your response to two decimal​ places).
What would be the annual inventory holding​ cost? ​$

177.23 ​(round your response to two decimal​ places).
Part 4
​c)
Given the​ EOQ, how many orders will be made​ annually?

enter your response here orders ​(round your response to two decimal​ places).
What would be the annual order​ cost? ​$

enter your response here ​(round your response to two decimal​ places).

Let's work through the problem step by step to find the required values.

### Part 4
**c) Given the EOQ, how many orders will be made annually?**

The number of orders made annually can be calculated using the formula:
\[
\text{Number of Orders} = \frac{\text{Annual Demand (D)}}{\text{Economic Order Quantity (EOQ)}}
\]
Given:
- Annual Demand (D) = 2,550 units
- EOQ = 262.55 units

\[
\text{Number of Orders} = \frac{2550}{262.55} \approx 9.72 \text{ orders}
\]

**So, the number of orders made annually is approximately 9.72 orders.**

**What would be the annual order cost?**

The annual order cost can be calculated using the formula:
\[
\text{Annual Order Cost} = \text{Number of Orders} \times \text{Order Cost per Order}
\]
Given:
- Number of Orders = 9.72
- Order Cost per Order = $18.25

\[
\text{Annual Order Cost} = 9.72 \times 18.25 \approx 177.87 \text{ dollars}
\]

**So, the annual order cost is approximately $177.87.**

### Summary
- **Number of orders made annually:** 9.72 orders
- **Annual order cost:** $177.87

Would you like more details or have any questions?

Here are five related questions:
1. How is the EOQ derived mathematically?
2. What impact would a change in holding cost have on the EOQ?
3. How would a decrease in order cost affect the number of orders annually?
4. What would happen to the EOQ if the annual demand increased?
5. How does lead time affect inventory management?

**Tip:** Regularly reviewing and optimizing your EOQ can help minimize total inventory costs, which includes both holding and ordering costs.

Learn how to calculate Economic Order Quantity (EOQ), annual inventory holding cost, and number of orders per year based on given demand, holding cost, and order cost. Detailed step-by-step solutions included.

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