The demand for steel belted radial tires for resupply on a weekly basis is provided in the following table:

Assumptions: Lead time for resupply is between 1 and 3 days. Currently, we have 7 steel belted radial tires in stock and no orders are currently due. We seek to determine the order quantity and order point to reduce our total and average costs. The fixed costs for placing an order are $20. The cost for holding the unused stock is $0.02 per tire per day. Each time we cannot satisfy a demand, the customer goes elsewhere. Assume a loss of $8 to the company for each lost customer. The resupply company operates 24 hours a day, 7 days a week.