Discuss the below:
Q: Leaky Pipe, a local retailer of plumbing? supplies, faces demand for one of its SKUs at a constant rate of 20,400 units per year. It costs Leaky Pipe $8 to process an order to replenish stock and $5.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is placed. No backordering is allowed. Assume 250 working days a year.
a. Leaky Pipe's optimal order quantity is how many units.