Hayes Electronic stocks and sells specific brand of personal computer. It costs the firm $450 each time it places an order with the manufacturer for the personal computers. The cost of carrying one PC in inventory for year is $170. The store manager determines that the total annual demand for the computers will be 1,200 units, with the constant demand rate during the year. Orders are received in minutes after placement from the local warehouse maintained by the manufacturer. The store policy is never to have stockouts of the PCs. The store is open for business every day of the year except Christmas Day. Find out the following.
a. The optimal order quantity per order (Q=79.7)
b. The minimum total annual inventory costs ($13,550)
c. The optimal number of orders per year (15.05 orders)
d. The optimal time between orders in working days (24.18 days)