Response to the following problem:
Business Supply Company, Inc. (BSC) is a local distributor of the NCQ electronic cash register. The cash registers cost BSC $320 each, and (neglecting inventory costs) BSC estimates it earns a profit of $80 on each cash register sold. The cost of ordering the cash registers from NCQ is $100, and BSC uses an annual inventory holding cost rate of 20 %. If BSC runs out of the cash registers, it estimates it will suffer a customer goodwill cost of $50 for each week a customer must wait. There is also a fixed administrative cost of $1.50 to process a backorder. Weekly demand averages 75 units, and the delivery lead time is two weeks. Determine the following:
a. The optimal inventory policy (order quantity and reorder point) for NCQ cash registers.
b. The number of weeks between cash register orders.
c. The percentage of customers who will be placed on backorder.
d. BSC's annual profit on the cash registers.