Question: PLG Sports (PLG) sells outdoors products in their retail shops. They get the brakes from Brook Corp., and the brake sales are pretty steady all

PLG Sports (PLG) sells outdoors products in their retail shops. They get the brakes from Brook Corp., and the brake sales are pretty steady all year around. Their estimation of yearly demand is 4,900 units. The cost of each brake is $35 for PLG and the carrying cost is 30% of the unit cost. The fixed ordering cost is $90 per order. At this moment PLG's ordering quantity is 120 units per order, which it lasts more than 2 weeks.

(1) At his current ordering policy, what is PLG's annual inventory holding cost?

(2) What is the economic ordering quantity for PLG?

(3) How much is the total annual ordering and holding cost if PLG switches to EOQ policy?

(2) What is the economic ordering quantity for PLG?

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