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The annual demand of a manufacturing component used in company Systems Group is 24,000 units....

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The annual demand of a manufacturing component used in company Systems Group is 24,000 units. The cost of the component is $93 and holding costs (which includes storage, insurance, and cost of capital) are 38.5% of the unit cost. Each time an order is placed the company expects to incur costs, such as administrative and receiving, of $260. The supplier lead time is 12 days and the company operates with even uction 365 days a year. Calculate the total annual cost (TAC) for this component based on the EOQ calculation (TAC total purchase holding and order costs). Before calculating total order cost, round the number of orders up to the closest whole number. Choose the closest answer from the list below. 2,405,875 2,253,222 2,048,989 2,399,218

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