The Always-Stocked Party Store wants to stay true to its name, especially since the “Out-to-Get-You” Party store is opening up very close by. One of their main sellers, the Mega-Keg, costs $2 to stock and accounts for sales of 3,600 kegs per year. Each order for kegs cost roughly $200 and takes on average five-days to be delivered, with the possibility of two-day delays.

(a) What is the optimal order size for Mega-Kegs?

(b) At what point should the kegs be reordered to assure that the store never runs out?