Using the fixed-order quantity model an annual demand of, Operation Management

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Using the fixed-order quantity model an annual demand of

Using the fixed-order quantity model, an annual demand of 36,000 units, a cost per order of $80 and a holding cost per unit per year of $4. The per unit purchase price is $0.20. The store is open 365 days per year. It takes 10 days for the order to be delivered.

a. What is the optimal order quantity?

b. What is the total inventory per year

c. What is the optimal number of orders?

d. What is the reorder point?

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