Problem 1: The Wheeling Pottery Store begins each month with 1200 pots in stock. This stock is depleted each month and reordered. If the carrying cost per pot is $8 per year and the fixed order cost is $90, what is the total carrying cost?
Problem 2: What is the restocking cost? Should Wheeling increase or decrease its order size?
Problem 3: Describe an optimal inventory policy for Wheeling in terms of order size and order frequency.