(Solved): The same as aircraft supply business above manufactures specialty rivets with high tensile character ...

The same as aircraft supply business above manufactures specialty rivets with high tensile characteristics required for extreme and varied temperatures found in aircraft applications. The company produces 5 different sizes of these specialty rivets for finished goods inventory, and unfortunately does not have detailed cost information per rivet size. The actual ordering cost and carrying costs are not known for each size, but they do know that those costs are the same, regardless of size. Each rivet size is produced

year. a. Calculate the order quantities to minimize inventories and maintain the same total number of runs. Calculate the old and new average inventories, noting any change in the number of orders per year. b. Calculate the period order quantity if the economic order quantity is 600 units and the annual usage is 2600 units. \table[[Item,Annual Usage,Present Orders per Year,Present Lot Size,Sq Rt (

),New Lot Size

Sq Rt (A

),New Orders per Year